1151. In pakistan income tax is :

A. Progressive tax
B. Proportional tax
C. Direct Tax
D. Both A and B *

1152. Which tax better conforms the principle of equality in taxation ?

A. Progressive tax
B. Regressove tax *
C. Proportional tax
D. Fixed tax

1153. Which one is not a principle of taxation ?

A. Principle of equality
B. Principle of certainty
C. Principal of morality *
D. Principal of diversity

1154. A country has proportional system of taxation. A person pays Rs 500 tax when his income is 5000, how much tax he will pay it if his earning rises to 8000:

A. 200
B. 400
C. 600
D. 800 *

1155. Which source a private company cannot use ?

A. A bank loan
B. A bank overdraft
C. Selling new shares in stock exchange
D. Deficit finance (new money ) *

1156. Net taxes ae :

A. Domestic taxes minus foreign taxes
B. Business taxes minus personal taxes
C. Total taxes minus government transfer payments *
D. Total taxes minus government purchases

1157. Which is not counted as public expenditure ?

A. The local city bus service receives a subsidy
B. Investment spending by public companies *
C. Defence expenditure
D. Inerest payment on national debt

1158. If income tax is assessed 100 $ on an income of 1000 $ .Compared to this which one of the following indicts tat the income rate is progressive ?

A. 150 $ tax on 2000 $ income
B. A tax of 350 dollars on a $3,000 income *
C. 400 $ tax on 4000 $ income
D. 450 $ tax on 5000 $ income .

1159. The most important source of income of a government is :

A. Foreign loans
B. Sprinting of new money
C. Sale of government property
D. Taxes *

1160. Progressive taxes :

A. Increase government revenue
B. Bring equality in distribution of incomes
C. Compel rich people to be honest
D. A and B of the above *