Question

If the income tax is increased by 19%, the net income is reduced by 6%. The rate of income tax is

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Answer 1

Step-by-step explanation:

Let the income = 100

Let tax rate% = x%

According to the question,

(100−x)×99100=(100−1.19x)

9900−99x=10000−119x

20x=100

x=5%

Hence required tax rate = 5%