ICSE Class 10 Answered
What are the differences between tax and
subsidy?
Asked by Topperlearning User | 27 Apr, 2015, 01:40: PM
Expert Answer
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Tax |
Subsidy |
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Tax is a compulsory payment to the government by the income groups. |
Subsidy is a payment to the tax-payers by the government to enable them to sell certain goods at a low price. |
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Thereby, it increases the revenue of the government. |
Thereby, it reduces the revenue of the government. |
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It increases the price of a good and reduces the income of the tax payer. |
It reduces the selling price of a good and increases the income of the tax payer. |
Answered by | 27 Apr, 2015, 03:40: PM
