General Studies · Statements and Conclusions

The given situation is followed by two conclusions. Read the information carefully and decide which of the given conclusions logically follows. Situation: The government of country D is thinking of implementing a flat tax system, which will impose a uniform tax rate on each employed person regardless of their total income. However, most of the population believes that the existing progressive tax system is better and fairer as a person pays tax according to his affordability. Conclusions: (I) At present no citizen of country D is burdened with the tax amount that he has to pay and hence there is hardly any tax defaulter in the country. (II) As per the flat tax system, everyone will have to pay the same amount of tax which will cause financial trouble to most citizens of the country.