Aparna Lucknow, India 601 Questions 0 Answers 0 Best Answers 678 Points View Profile Aparna Asked: September 30, 20212021-09-30T17:48:31+05:30 2021-09-30T17:48:31+05:30In: Economics What is Regressive Tax? What is Regressive Tax? key economy terms Share Facebook 1 Answer Recent Rahul 0 Questions 518 Answers 176 Best Answers 2k Points View Profile Best Answer Rahul BRIGHT 2021-09-30T17:50:20+05:30Added an answer on September 30, 2021 at 5:50 pm Regressive Tax Under this system of taxation, the tax rate diminishes as the taxable amount increases. In other words, there is an inverse relationship between the tax rate and taxable income. The rate of taxation decreases as the income of taxpayers increases. This system of taxation generally benefits the higher sections of the society having higher incomes as they need to pay tax at lesser rates. On the other hand, people with lesser incomes are burdened with higher rate of taxation. 0 Reply Share Share Share on Facebook Share on Twitter Share on WhatsApp Leave an answerCancel replyYou must login or register to add a new answer. Related Questions What is Spot Price? What is Sovereign Risk?