Question

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?

• A. Service tax
• B. Personal income tax
• C. Excise duty
• D. Corporation tax

Answer 1

The correct option is C Excise duty

The excise duty's share in the total tax revenue which was 41.3% in 1991-92, declined to 25.1% in 2006-07 It is the most that has declined in the last 5 years. Corporation tax has maximum share followed by income tax. Service tax was introduced very late so it’s share would obviously increase.