Multiple choice

In which of the following taxes, does the rate of tax decrease as the income of tax payer increases?

  1. Proportional Tax

  2. Regressive Tax

  3. Progressive Tax

  4. Digressive Tax

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

It is regressive tax. In regressive tax, the rate of tax decreases as the income of the tax payer increases.