Explain the 4 different types of tax structure system
1) Progressive
2) Regressive
3) Proportional
4) Degressive
Also what's the difference between type of tax and nature of tax???
Can a particular type of tax be (say) proportional in nature and regressive in type at the same time???

Dear Student,
PROGRESSIVE TAX: It is a tax in which the tax rate increases as the income increases.It takes a larger amount of tax from people having high incomes and main burden remains on the high income earners.
REGRESSIVE TAX: It is a tax in which the tax rate decreases as the income decreases. It takes larger amount of tax from people having low incomes and main burden remains on people having low incomes.
PROPORTIONAL TAX: It is a tax imposed so that tax rate is fixed, with no change as the taxable base amount increases or decreases. It remains same no matter what is the income of the payer.
DEGRESSIVE TAX: It is a tax in which the rate decreases as the amount subject to taxation increases. Degressive taxes redistribute wealth from bottom to top.
NATURE OF TAX: Nature of taxes include GST, CGST, SGST, UTGST . Nature of taxes is almost same as the type of taxes. There is no difference between the type of tax and nature of tax.these both have same meaning .Nature of tax is equal to type to tax. we can interchangeably use both terms.
NO, ANY TYPE OF TAX CANNOT BE REGRESSIVE AND PROPORTIONAL AT A TIME.
Hope this information will clear your doubts about this topic.
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Regards

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