2010 General Studies, all questions

UPSC Prelims 2010 · General Studies

Question 143: Economy and Social Development

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 ?

aService tax
bPersonal income tax
cExcise duty
dCorporation tax

AnswerThe answer is (c).

Over the five years to 2009-10 the share of excise duty in gross tax revenue fell significantly, while the shares of corporation tax, personal income tax and service tax rose. The excise rate cuts in the stimulus packages of 2008-09 added to the decline. Remember: the rising shares are of direct taxes and the service tax; the falling share is of excise duty.

Why each option is right or wrong
  • (a) The share of service tax rose over the period.
  • (b) The share of personal income tax rose over the period.
  • (c) Right: the share of excise duty fell significantly.
  • (d) The share of corporation tax rose over the period.

Explanation: written by UPSC Grade, not by UPSC.

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Source: UPSC, Civil Services (Preliminary) Examination 2010, General Studies, Series A. The paper on upsc.gov.in.