Question

Among the tax revenues of the Central government, the leading source is _____.

• A. income tax
• B. corporation tax
• C. union excise tax
• D. custom duty

Answer 1

The correct option is C union excise tax

• The Union excise duties are the leading source of revenue for the Central Government and are levied on commo­dities produced within the country (exclu­ding those commodities on which State excise is levied e.g. liquors and narcotic drugs).
  
• The most important commodities from the revenue point of view are sugar, cotton, mill cloth, tobacco, motor spirit, matches and cement.