Which of the following is an example of a regressive tax?
A. Income tax with higher rates for higher income
B. Goods and Services Tax (GST)
C. Corporate tax with progressive slabs
D. Wealth tax
Answer: Option B
Solution (By JKSSB Mock Tests)
GST is largely regressive because lower-income groups spend a higher proportion of their income on consumption, bearing a relatively higher tax burden compared to higher-income groups.
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