Question

Which of the following is not a tax reform ?

(a) Reduction in taxes (b) Reforms in Indirect taxes

(c) Simplication of Tax process (d) Devaluation of Rupee
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Answer 1

Answer:

D) Devalution of rupee

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Answer 2

The correct answer is OPTION D: Devaluation of Rupee.

• When the government alters the way taxes are collected or administered, it is usually to improve tax administration or give economic or social benefits.
• Tax reform could include lowering the government's tax burden on all citizens, increasing or decreasing the tax system's progressiveness, or simplifying the tax system to make it more understandable and responsible.
• Several international organisations have formed to reform tax systems to make income taxes and value-added taxes more economically liberal.
• Tax methods that account for externalities are another option.