Choose whether the above statement is True/False:

A tax is a sum Of money that the government pays to the people through subsidies.

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True

False

answer is B.

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Detailed Solution

The above statement is false. The government does not pay tax to people; instead, it is a sum that people pay to the government for the services it provides. Municipal corporations make their funds through property, water, electricity, and entertainment taxes. Therefore, the amount of tax imposed is directly proportional to the service consumption. Ward councillors again use the revenue from tax collection to maintain the services provided by the government, such as building roads, constructing schools, and providing social security and medicare facilities to the citizens.

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