Progressive Tax is a process in which as the income of a person increases, rate of income tax on the income also goes up.

• A progressive tax structure improves the distribution of income.
• High income attracts high tax to be paid that eventually distributed among poors through government schemes and policies.
• India uses Progressive Taxation system.

•   Regressive Tax is the process according to which as income of a person goes up, rate of tax goes down.

•   A regressive tax imposes a greater burden (relative to resources) on the poor than on the rich.

•   There is an inverse relationship between the tax rate and the taxpayer's ability to pay, as measured by assets, consumption, or income.

•   Indirect taxes, such as sales and service taxes, are examples of regressive taxes because both the rich and the poor pay the same tax when buying ordinary goods and services.

•   Other regressive taxes include: Sales Tax. Property Tax.