2020 · Q1
As per the Budget Estimates of 2019-20, the following are some of the important sources of tax receipts for the Union Government:
- 1Corporation Tax
- 2Taxes on Income other than Corporation Tax
- 3Goods and Services Tax
- 4Union Excise Duties Which one of the following is the correct descending order of the foresaid tax receipts as a percentage of GDP?
General KnowledgeIndian Economy
- A1, 2, 3, 4
- B1, 3, 2, 4
- C3, 2, 1, 4
- D2, 4, 3, 1
Explanation
In the Budget Estimates for 2019-20, corporation tax was estimated at about Rs 7.66 lakh crore, GST (CGST, IGST and compensation cess) at about Rs 6.63 lakh crore, income tax other than corporation tax at about Rs 5.69 lakh crore, and Union excise duties at roughly Rs 3 lakh crore. Against a nominal GDP of about Rs 203 lakh crore, these work out to roughly 3.8%, 3.3%, 2.8% and 1.5% of GDP. The correct descending order is therefore corporation tax (1), GST (3), income tax (2), Union excise duties (4). Option B gives exactly this sequence.