Which of the following is NOT a type of tax based on the impact on income distribution?
A. Proportional tax
B. Ad valorem tax as a distribution classification
C. Progressive tax
D. Regressive tax
Answer: Option B
Solution (By JKSSB Mock Tests)
Ad valorem is a classification based on the method of assessment (percentage of value). Based on impact on distribution, taxes are progressive, proportional or regressive.
No comments yet. Be the first to start the discussion!