A decrease in tax to GDP ratio of a country indicates which of the following?
(1) Slowing economic growth rate
(2) Less equitable distribution of national income
Select the correct answer using the code given below.
A decrease in tax to GDP ratio of a country indicates which of the following?
(1) Slowing economic growth rate
(2) Less equitable distribution of national income
Select the correct answer using the code given below.
Slowing economic growth rates may result in lower tax collection.Tikdam: Controversial question it depends on tax buoyancy but geneally as economy slows, tax to GDP ratio also declines Statment 2 can also be proved to be both true and false in different scenraios