As per the Budget Estimates of 2019-20, the following are some of the important sources of tax receipts for the Union Government: 1. Corporation Tax 2. Taxes on Income other than Corporation Tax 3. Goods and Services Tax 4. Union Excise Duties Which one of the following is the correct descending order of the aforesaid tax receipts as a· percentage of GDP?
1, 3, 2, 4
Analysis of Union Government Tax Receipts (Budget Estimates 2019-20)
The question asks for the descending order of four major sources of tax receipts for the Union Government as a percentage of GDP, based on the Budget Estimates for the fiscal year 2019-20. Understanding the relative contribution of different taxes is crucial for analyzing government finances.
Based on the Union Budget Estimates for 2019-20, the major sources of tax revenue and their estimated contributions (as a percentage of total gross tax revenue, which can be broadly correlated to their percentage of GDP ranking for major taxes) were approximately as follows:
- Corporation Tax (Source 1)
- Goods and Services Tax (GST) (Source 3)
- Income Tax (other than Corporation Tax) (Source 2)
- Union Excise Duties (Source 4)
Let's examine the approximate relative contributions in the 2019-20 Budget Estimates:
| Tax Source (as per question) | Approximate Share in Gross Tax Revenue (BE 2019-20) | Ranking |
|---|---|---|
| 1. Corporation Tax | ~21% | 1st |
| 2. Taxes on Income other than Corporation Tax | ~17% | 3rd |
| 3. Goods and Services Tax (GST) | ~18% | 2nd |
| 4. Union Excise Duties | ~7% | 4th |
Based on these estimates, Corporation Tax was projected to be the largest source of tax revenue, followed by Goods and Services Tax (GST). Income Tax (other than Corporation Tax) was the third largest, and Union Excise Duties were the fourth among these four sources.
Therefore, the descending order of these tax receipts as a percentage of GDP, based on the Budget Estimates of 2019-20, is:
- Corporation Tax (1)
- Goods and Services Tax (GST) (3)
- Taxes on Income other than Corporation Tax (2)
- Union Excise Duties (4)
This order corresponds to the sequence 1, 3, 2, 4.
Descending Order of Tax Receipts 2019-20
The correct descending order is 1, 3, 2, 4.
Revision Table: Union Government Tax Receipts
| Rank (Descending) | Tax Source | Corresponding Number | Estimated Contribution (BE 2019-20) |
|---|---|---|---|
| 1 | Corporation Tax | 1 | Highest among the four |
| 2 | Goods and Services Tax (GST) | 3 | Second highest |
| 3 | Taxes on Income other than Corporation Tax | 2 | Third highest |
| 4 | Union Excise Duties | 4 | Lowest among the four |
Additional Information: Understanding Tax Sources
Tax receipts are the revenue collected by the government through various taxes. These taxes are broadly categorized into direct taxes and indirect taxes.
- Direct Taxes: These are taxes levied directly on the income or profits of individuals and corporations. Examples include Corporation Tax and Income Tax. The burden of the tax falls directly on the entity paying it.
- Indirect Taxes: These are taxes levied on goods and services. Examples include Goods and Services Tax (GST) and Union Excise Duties. These taxes are typically collected by intermediaries (like businesses) and are ultimately borne by the final consumer in the form of higher prices.
The relative contribution of direct and indirect taxes can vary from year to year based on economic conditions, policy changes, and tax compliance. The Budget Estimates provide a projection of these contributions for the upcoming fiscal year, which helps in understanding the government's expected revenue structure.
Similar Questions
Who among the following was the Chairman of the Committee on Deepening Digital Payments appointed by the RBI ?
Recently the Reserve Bank of India has imposed limitations, initially for a period of six months, on the withdrawal of amount by account holders of which one of the following banks?
What is 'Unicorn Company' often mentioned in Indian news?
Which one of the following statements about Indian economy during 2019-20 is not correct?
According to the updated World Bank data for 2017, India is the sixth biggest economy of the world (in terms of GDP)
Which one of the following is not ahead of India?Which of the following statements relating to SEBI (Index Providers) Regulations, 2024 is/are correct?
1. These are applicable only to Index Providers that administer significant indices consisting of securities listed on a recognized stock exchange in India for use in the Indian securities market.
2. The primary objective is to promote transparency and accountability in governance and administration of indices.
Select the answer using the code given below:Which one of the following best explains how India's growth resilience is achieved in a fragile global context in recent years?
Important Questions from Economic and Financial Affairs
As per the Economic Survey 2020-21, India's real GDP growth is estimated to contract by ______ in financial year 2020-2021.
The Government of India has set a target of achieving how much solar power capacity by the year 2022?
Which of the following statements about the detailed corporate governance norms for listed companies issued in April 2014 by SEBI is/are correct?
1. It provides for stricter disclosures and protection of investor rights, including equitable treatment for minority and foreign shareholders
2. Under the new norms listed companies are required to provide the option of facility of e-voting to shareholders on all resolutions proposed to be passed at general meetings
Select the correct answer using the code given below.
Pradhan Mantri Jan-Dhan Yojana (PMJDY ) now has in excess of 472 million accounts. Which state has topped this List (as on October 12, 2022)?
In 2018, what was the investment in infrastructure as a percentage of GDP in India?
