“Explain The Impact Of Tax On Price & Quantity Of The Product With The Help Of a Diagram Ex-Lump Sum Tax

, Specific Tax”

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such as street lighting and street cleaning. The purpose of taxation is to finance government expenditure. then it is called an indirect tax.INTRODUCTION  What is tax ? A fee charged ("levied") by a government on a product. then it is a direct tax. Since public goods and services do not allow a non-payer to be excluded. RNSIT . there cannot be a market in the good or service. If tax is levied on the price of a good or service. income. which tend to finance themselves largely through taxes. One of the most important uses of taxes is to finance public goods and services. and so they need to be provided by the government or a quasi-government agency. or activity. or allow exclusion by a consumer. If tax is levied directly on personal or corporate income.

      Objective of raising revenue Regulatory objectives Regulatory consumption Regulatory production Regulating imports and exports Regulating effects of inflation. depression etc RNSIT .

 Developmental objectives Economic development Capital formation Increasing employment opportunities Objectives of reducing inequalities Inequalities in economic disparities Reduction in regional imbalances RNSIT       .

Ultimately.000 worth of taxes already paid.000 plus a 50. or 10% of the retail price of the car. for instance.000.000 plus 8000 in a VAT tax.000 for the SUV and 58.000 and a value-added rate of 10%. Ford takes an 8000 credit for the tax it already paid and sends 58. the government pockets 58. in taxes. FORD might buy its steel and other materials for 80.000 tax for the finished vehicle. A dealer then pays 500. The dealer collects the 50. A buyer then pays 558. takes a credit for the 50. Take. a car with a sticker price of 300.000 to the government. RNSIT . and sends 5000 to tax authorities.000.000 in taxes.

800 has quit   RNSIT . For direct import of fuel. so no sales tax is payable At 29%. down from 340 previously 30% of its cabin crew of 1. Tamil Nadu charges the highest sales tax Hyderabad’s 20% lowest among big cities    60% higher in India than in other countries 300 flights daily.

18 per liter.G) excise and customs levies 33.47% Ex:71rs 17.69 (S.G) sales tax & enter tax 36. (AC) 5rs RNSIT .06 (C.



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