Which of the following taxes inculcates civic consciousness?
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Income tax
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Sales tax
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Excise duty
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None of these
A
Correct answer
Explanation
It inculcates civic consciousness.
The income tax is a direct tax and is charged from the salary or income of tax payer. The tax payer knows how much tax he or she has paid. Hence, the tax payer takes interest in seeing that these funds are properly utilised. This public awareness helps in checking the wastage of public expenditure.