Under which tax- One nation, one uniform tax is ensured

The correct answer is GST (Goods and Services tax).

Key Points

• GST (Goods and Services Tax)
  • GST is a comprehensive, multi-stage, destination-based tax that is levied on every value addition.
  • Designed to replace multiple cascading taxes levied by the central and state governments.
  • Aimed at creating a single, unified market by subsuming various indirect taxes like VAT, Service Tax, and Excise Duty.
  • Ensures uniformity in the tax system across the nation, promoting ease of doing business.
  • Applied in countries like India, Canada, and Australia, among others.

Additional Information

• VAT (Value Added Tax)
  • VAT is a consumption tax levied on the value added to goods and services at each stage of production or distribution.
  • Introduced to ensure that tax is collected efficiently and prevent tax evasion.
  • Each stage in the supply chain, from production to sale to the end consumer, is taxed.
  • VAT ensures that the tax burden is shared between production and distribution.
  • Largely implemented in Europe and other parts of the world as a replacement for Sales Tax.
• Income Tax
  • Income tax is a direct tax levied on the income of individuals and businesses.
  • It is a progressive tax system where the tax rate increases as the taxable income increases.
  • Collected by the government to fund various public services and infrastructure projects.
  • Income tax can include wages, salaries, dividends, interest, and other forms of income.
  • Exemptions, deductions, and credits can reduce the taxable income and tax liability.
• Sales Tax
  • Sales tax is a consumption tax imposed by the government on the sale of goods and services.
  • Typically calculated as a percentage of the sale price at the point of purchase.
  • The end consumer bears the burden of the sales tax.
  • Sales tax can vary significantly between different jurisdictions.
  • Commonly used in the United States, where each state can set its own sales tax rate.