Q: Write down the types of taxes.
A: 1) Proportional tax 2) Progressive tax 3) Regressive tax 4) Value added tax
Q: What is meant by progressive tax?
A: progressive tax refers to a tax whose rate increases with the increase in the income of the people and decreases with the decrease in income such as income tax.
Q: What is meant by proportional tax?
A: Proportional tax refers to a tax that is levied at the same rate on the income or property of each person, property tax, etc.
Q: What is meant by Regressive tax?
A: Regressive tax refers to a tax that is levied at a higher rate on a lower level of income and a lower rate on a higher level of income.
Q: What is meant by Value added tax?
A: This tax is levied on different stages of production of goods. As the value of an item increases, so does the tax at each stage.
Q: What is meant by income budget?
A: A budget in which the income from various taxes is shown is called income budget.
Q: What is meant by capital budget?
A: A budget that outlines the expenditures that lead to an increase in capital goods in the country.
Q: Describe the types of government expenditure.
A: There are two types of government expenditure. 1) Development Expenditure 2) Non-Development Expenditure
Q: Describe the main sources of income of a country.
A: 1) Fees 2) Price 3) Penalties 4) Special Assessment
Q: Write down the four main heads of government expenditure.
A: 1) Defense 2) Discipline 3) Social Security 4) Police
Q: Write the sources of income of the provincial governments in Pakistan.
A: 1) Provincial Excise Duty 2) Land Revenue 3) Stamp Paper and Court Fee 4) Registration Fee
Q: Write the definition of Zakat.
A: Zakat literally means purity and growth. In religious terms, Zakat is a financial act of worship which is obligatory on every Muslim who is Sahib-e-Nissab. The rate of Zakat is 2.5%.