Consider the following taxes : (i) Corporation tax (ii) Income tax (iii) Service tax (iv) Union Excise…
In the Union Budget of 2016-17, the gross tax revenue of the Centre was led by corporation tax (about ₹ 4.9 lakh crore), followed by income tax (about ₹ 3.5 lakh crore),…
Choose your answer
Consider the following taxes :
(i) Corporation tax
(ii) Income tax
(iii) Service tax
(iv) Union Excise Duties
Which of the following correctly describe s their contribution, in descending order of importance, to the Central Government’s Gross Tax Revenue ?
Answer and explanation
Correct answer A
In the Union Budget of 2016-17, the gross tax revenue of the Centre was led by corporation tax (about ₹ 4.9 lakh crore), followed by income tax (about ₹ 3.5 lakh crore), Union excise duties (about ₹ 3.2 lakh crore) and service tax (about ₹ 2.3 lakh crore), giving (i), (ii), (iv), (iii). Since then service tax and most Union excise duties have been subsumed in GST (July 2017), and personal income tax has overtaken corporation tax.
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UGC NET Economics