The correct answer is (a) 74%.
Indirect taxes are taxes that are levied on goods and services, and are paid by the consumer when they purchase the goods or services. Direct taxes are taxes that are levied on individuals or businesses, and are paid directly to the government.
In the year 2004-05, the share of indirect taxes in the total tax revenue of Uttar Pradesh was estimated to be 74%. This means that for every 100 rupees of tax revenue collected by the government of Uttar Pradesh, 74 rupees came from indirect taxes. The remaining 26 rupees came from direct taxes.
The high share of indirect taxes in the total tax revenue of Uttar Pradesh is due to the fact that the state government relies heavily on taxes on goods and services to raise revenue. This is in contrast to the central government, which relies more on direct taxes such as income tax and corporate tax.
The high share of indirect taxes in the total tax revenue of Uttar Pradesh has a number of implications. First, it means that the burden of taxation falls disproportionately on the poor and middle class, who are the main consumers of goods and services. Second, it makes the state government less responsive to the needs of the people, as it is not directly accountable to the taxpayers. Third, it can lead to inflation, as businesses pass on the cost of taxes to consumers in the form of higher prices.
The government of Uttar Pradesh has taken some steps to reduce the share of indirect taxes in the total tax revenue. For example, it has introduced a number of tax reforms, such as the Goods and Services Tax (GST), which has replaced a number of indirect taxes with a single tax. However, more needs to be done to reduce the burden of indirect taxes on the people of Uttar Pradesh.