A tax such as VAT would generally be viewed as:

Question

progressive, because the consumption expenditure of the rich is greater than that of the poor

regressive, because low-income households spend a greater proportion of their income on goods that attract VAT

proportional, because the VAT rate is constant across goods that attract VAT

progressive, because most goods consumed by poor households are zero-rated

Answer 1

A tax such as VAT (Value-Added Tax) would generally be viewed as:

regressive, because low-income households spend a greater proportion of their income on goods that attract VAT.

This characterization arises because VAT is a consumption tax applied equally across goods and services, meaning that lower-income households end up paying a larger percentage of their income on VAT compared to higher-income households, who can save a larger portion of their income.