Consider the following:

  1. Regressive taxation policy
  2. Lowering interest rates by RBI
  3. Increase in number of angel investors
  4. Widening of the tax base by government

Which of the above will help to boost the Start-up India programme?

Answer: [B] Only 2, 3 & 4

A regressive tax is a tax that takes a larger percentage from low-income people than from high-income people. As the income rises, the tax rate decreases in regressive taxation. So, it will prove to be a hindrance to Start-up India programme. Widening of the tax base will reduce the revenue deficit and hence will help to boost Start-up initiatives.

This question is a part of GKToday's Integrated IAS General Studies Module