Questions and Answers
What is the key difference between a direct tax and an indirect tax?
Direct tax is paid by the intended taxpayer, while indirect tax is paid by someone else.
Which type of tax imposes increasing rates as the tax base increases?
Progressive tax
What is the purpose of excise tax as mentioned in the text?
To impose taxes on sin products and non-essential commodities
What is the essential characteristic of taxation that ensures it is not a voluntary payment?
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Which characteristic of taxation ensures that the tax amount is based on an individual's ability to pay?
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Under what condition can a tax be payable in a form other than money based on the text?
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What is the purpose of taxation according to the text?
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In the context of taxation, why is it necessary for the object to be subject to the jurisdiction of the taxing state?
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Who has the power to levy taxes according to the text?
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Under which theory of cost allocation does taxation operate as per the text?
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