Which one of the following tax systems will move in the direction of reduction of economic disparities?
درج ذیل میں سے کون سا ٹیکس نظام معاشی عدم مساوات کو کم کرتا ہے؟
- Progressive tax
- Regressive tax
- Flat rate tax
- All of these
Explanation
- A progressive tax system taxes higher-income individuals at higher rates.
- It reduces income inequality by redistributing wealth from rich to poor.
- Lower-income groups pay less, while higher-income groups contribute more.
- Thus, it helps in reducing economic disparities in society.
Last verified on 22-04-2026
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