The correct answer is: a) Income tax
Income tax is a major source of revenue for the Sikkim government. In 2020-21, income tax accounted for 36% of the state’s total revenue. The other major sources of revenue for the Sikkim government are central government grants (27%), sales tax (17%), and excise duty (12%).
Income tax is a tax on the income of individuals and businesses. It is levied by the central government and the state governments. The central government taxes income from salaries, wages, pensions, interest, dividends, and capital gains. The state governments tax income from agriculture, business, and professions.
Income tax is a progressive tax, which means that the tax rate increases as income increases. The tax rate for individuals ranges from 5% to 30%. The tax rate for businesses ranges from 22% to 30%.
Income tax is an important source of revenue for the government. It is used to fund essential services such as education, healthcare, and infrastructure. It is also used to reduce the deficit and national debt.
Central government grants are a major source of revenue for the Sikkim government. In 2020-21, central government grants accounted for 27% of the state’s total revenue. Central government grants are given to states to help them meet their expenditure needs. The grants are given for a variety of purposes, such as education, healthcare, and infrastructure.
Sales tax is a major source of revenue for the Sikkim government. In 2020-21, sales tax accounted for 17% of the state’s total revenue. Sales tax is a tax on the sale of goods and services. It is levied by the state government. The tax rate for sales tax varies from state to state.
Excise duty is a major source of revenue for the Sikkim government. In 2020-21, excise duty accounted for 12% of the state’s total revenue. Excise duty is a tax on goods that are produced or manufactured in India. The tax rate for excise duty varies from good to good.