gs1medium

In India, the tax proceeds of which one of the following as a percentage of gross tax revenue has significantly declined in the last five years?

  1. A.Service tax
  2. B.Personal income tax
  3. C.Excise duty
  4. D.Corporation tax
▶ Answer & Explanation

Correct answer: C. Excise duty

Excise duties, particularly on goods like petroleum and alcohol, have historically formed a large chunk of indirect tax revenue for the central government. However, with the gradual phasing out of excise duties on many manufactured goods and their subsumption into GST, along with changing economic structures and policy shifts, their share in the gross tax revenue has seen a decline over recent years.

Source: UPSC gs1 2010

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