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What are the main Systems of taxation

What are the main Systems of taxation, Taxation especially direct tax can be classified according to the following systems. These are:- Progressive Tax: Progressive tax is a form of tax in which the rate of tax increases as the income, stock of wealth or value of property to be taxed increases. This type of tax is graduated in such a way that its rate arises according to the level of income or wealth of the tax payer.

ga typical bar chart or graph

People with higher income are taxed more heavily than those that receive low income. The tax burden increases with increasing income levels or as the amount of wealth possessed increases. A good example of a progressive tax is Pay As You Earn (P.A.Y.E) system. Systems of taxation Progressive tax is demonstrated by a graph

Proportional tax: A proportional tax is a form of tax in which the rate of tax is the same irrespective of the level of income or wealth, other words; it is a system of taxation in which payers pay the same percentage or proportion of their income (or wealth) as tax. government expenditure

 A good example of proportional tax is the company tax in which companies are required to pay a fixed percentage of their profits as tax. Proportional tax is demonstrated by a graph; Regressive tax: Regressive tax is a tax system where the tax rate decreases as income increases. Systems of taxationSystems of taxation

 In this case, the higher the income of a consumer, the lower the rate of tax. In regressive tax, a poor person pays higher proportion of his income than a rich person. A good example of regressive tax is poll tax.

  1. economic tools for nation building
  2. budgeting
  3. factors affecting the expansion of industries
  4. mineral resources and the mining industries
  5. demand and supply
  6. types of demand curve and used
  7. advertising industry
  8. factors of production
  9. entrepreneur
  10. joint stock company
  11. public enterprises
  12. private enterprises
  13. limited liability companies
  14. migration
  15. population
  16. market concept
  17. money market
  18. shares
  19. how companies raises funds for expansion
  20.  

WEED AND THEIR BOTANICAL NAMES
1. ENVIRONMENTAL FACTORS AFFECTING AGRICULTURAL PRODUCTION
2. DISEASES
3. 52. SOIL MICRO-ORGANISMS
4. ORGANIC MANURING
5. FARM YARD MANURE
6. HUMUS

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