Home PYQs UPPSC UPPSC MCQs Prelims 1995 (GS Paper I)

Question

Which of the following taxes does not directly increase the price of a commodity to buyers:

  1. Income Tax
  2. Trade Tax
  3. Import Duty
  4. Excise Duty

Answer:

Option A: Income Tax

Detailed Solution:

The correct answer is “Income Tax”.

Income Tax is a direct tax levied on an individual or corporation's income. It does not directly impact the price of a commodity.  

Trade Tax, Import Duty, and Excise Duty are indirect taxes, which are added to the cost of a product, ultimately increasing its price for the consumer.