Introduction to Taxes and Inflation

Why does the government collect taxes from individuals and businesses?

• To buy luxury items

• To fund public services and infrastructure

• To distribute as gifts to citizens

• To support private businesses

What type of tax do we pay in India when we purchase goods and services?

• Income Tax

• Property Tax

• Goods and Services Tax (GST)

• Gift Tax

Indirect taxes are taxes that are directly paid to the government by individuals or corporations.

• True

• False

Answer explanation

Direct taxes are taxes that are directly paid to the government by individuals or corporations.

Look at the image shared. How much tax is being paid here?

_________ are compulsory payments made by individuals and businesses to the government.

CGST and SGST are charged on transactions made within a state.

• True

• False

Inflation is when the prices of things like food, clothes, and toys go _______ over time.

_________ tax is a tax on the money people earn from their jobs or businesses.

What is the total taxable amount seen in the image? (Type the answer in numbers)

Taxes take some of your income, while _______ makes things more expensive.