Economics · Taxation
Direct taxation is considered more equitable primarily because:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1It guarantees complete tax compliance from all unorganized sectors
- 2It is progressive, meaning taxation can be adjusted according to the taxpayer's earnings✓
- 3It applies uniformly to all commodities regardless of consumer income
- 4It has a lower administrative collection cost than indirect taxes
Correct answer
It is progressive, meaning taxation can be adjusted according to the taxpayer's earnings
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