Question: Transfer tax have seen several changes during the tenure of 46 years. The changes are primarily related to the slab as well as the rate need to be charged against the transfer of assets. These changes are again classified into political and economic factors.
Political Factors: - During this tenure there are several governing bodies have come up to run the country, which are again classified into democratic and republican parties. Every change brings in new laws and rules, which led to regulate the way taxes have been charged to the public. Hence, it is quite apparent that the changes in transfer tax could be a result of a political factor.
Economic Factors: - Apart from changes in the domestic economy, foreign countries often have different economic systems compared to the domestic system. Hence, the adjustments are often need to be made to align these changes.
Bellow is the question I am suppose to answer:
Right on target that political factors and economic factors play a role in adjustments tro transfer taxes. Could you please address the questions: What was the political environment at the time? What was the economic environment at the time? What were other key factors that influenced the particular change?