QUESTION $23$

$(4$ Marks$)$

A tax such as VAT would generaly be viewed as $...$

A$.$ Progressive, because the consumption expenditure of the rich is greater than that of the poor

B$.$ Regressive, Gecause low$-$income households spend a greater proportion of their income on goods that attract VAT

C$.$ Proportional, because the VAT rate is constant across goods the attract VAT

D$.$ Progressive, because moel goods consumed by poar housenalds are zaro raled