961. Progressive taxes:
A. Increase government revenue
B. Bring equality in distribution of incomes
C. Act as penalty for rich people
D. Both (a) & (b)

962. In Pakistan Income tax is:
A. Progressive tax
B. Proportional
C. Direct
D. (a) and (b) of above

963. Which tax better conforms to the principle of equality in taxation
A. Progressive tax
B. Regressive tax
C. Proportional tax
D. Fixed tax

964. Which one is not a principle of taxation:
A. Principle of equality
B. Principle of certainty
C. Principle of morality
D. Principle of diversity

965. A country has proportional system of taxation. A person pays Rs 500 tax when his income is 5000, how much tax he will pay if his earning rises to 8000:
A. 200
B. 400
C. 600
D. 800

966. 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)

967. Net taxes are:
A. Domestic taxes minus foreign taxes
B. Business taxes minus personal taxes
C. Total taxes minus govt. transfer payments
D. Total taxes minus govt. purchases

968. Which is not counted as public expenditure?
A. Subsidy given to local city bus service
B. Defence expenditure
C. Investment spending by public companies
D. Interest payment on national debt.

969. If Income tax is assessed as Rs. 100 on an income of Rs. 1000. Compared to this, which one of the following indictes that the income tax rate is progressive?
A. Rs. 150 tax on Rs. 2000 income
B. Rs. 350 tax on Rs. 3000 income
C. Rs. 400 tax on Rs. 4000 income
D. Rs. 450 tax on Rs. 5000 income

970. This is NOT a principle of taxation:
A. Principle of equality
B. Principle of certainty
C. Principle of secrecy
D. Principle of economy

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