Regressive Tax is actually a form of tax where the tax rate decreases as the amount subject to taxation increases. There is an inverse relation between the tax rate and the ability of the taxpayer to pay the taxes, thus the burden of taxes is on the poor.
On the other hand, Digressive Taxes are a mixture of progressive and proportional tax system. The structure of Digressive Tax is such that the tax rates increase till a point and after wards a simple uniform tax rate is charged. The tax rate does not increase in same proportion as compared to the increase in income.
