What is the current share of direct taxes in total tax revenue of the Central Government?
Following India's tax reforms of the 1990s, the share of direct taxes (personal income tax and corporate tax) in the Central Government's gross tax revenue rose steadily…
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What is the current share of direct taxes in total tax revenue of the Central Government?
Answer and explanation
Correct answer D
Following India's tax reforms of the 1990s, the share of direct taxes (personal income tax and corporate tax) in the Central Government's gross tax revenue rose steadily from about 19% in 1990-91 to around 36%-38% in the early 2000s (specifically 36.2% in 2000-01, 36.9% in 2001-02, and 38.4% in 2002-03, crossing 40% in 2003-04). Among the given choices (17%, 27%, 33%, and 37%), ('Around 37%') accurately represents the share of direct taxes in Central Government tax revenue at the time of the December 2004 examination.
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UGC NET Economics