Home PYQs UPPSC UPPSC MCQs Prelims 1995 (GS Paper I)

Question

The largest sources of tax revenue to the Central Government of India are:

  1. Union excise duties and corporate tax
  2. Custom duty and corporate tax
  3. Union excise duty and custom duty
  4. Custom duty and income tax

Answer:

Option A: Union excise duties and corporate tax

Detailed Solution:

The correct answer is “Union excise duties and corporate tax”.

The 5 major sources of revenue for the Government are: Goods and Services Tax (GST), Income tax, Corporation tax, Non-tax revenues, Union excise duties.

While the tax landscape has evolved with the introduction of GST, historically, Union Excise Duties and Corporate Tax have been the two primary sources of tax revenue for the Central Government of India.