does the over all tax structure and rate of income tax effect the rate of inflation?
Pratik K
(Student)
(3406 Points)
Replied 23 August 2008
yes.
Tax structure and rate of income tax are governede by government (Central or state)
It is as important as RBI policies.
I think you have heared about monetary policy and fiscal policy.
Fiscal policy covers the government area where it includes tax structure and tax rate as a meaningful tool to control over the Inflation/Deflation.
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