Which of the following is a major objective of progressive taxation?

Explanation

The correct answer is (C) To redistribute income and reduce inequality Explanation: • In a progressive tax system, the tax rate increases as the taxable amount increases. • This ensures that those with a higher ability to pay contribute more, which the government then uses for social welfare, thereby reducing the gap between the rich and the poor. Information Booster: • Income Tax in India is a classic example of progressive taxation. Additional Knowledge: • Regressive Tax: A tax where the rate decreases as the income increases (often indirect taxes are considered regressive in effect).