A challenge to Meghalaya’s tax collection efforts might be:

The correct answer is: All of the above.

A large informal sector means that a large proportion of the economy is not registered with the government and does not pay taxes. This makes it difficult for the government to track economic activity and collect taxes.

Limited tax awareness means that many people in Meghalaya are not aware of their tax obligations or do not understand the tax system. This can lead to people not paying their taxes or paying them incorrectly.

Tax evasion is the illegal practice of not paying taxes. This can be done by individuals or businesses. Tax evasion can be a major challenge for governments, as it can lead to a loss of revenue.

The following are some additional details about each of the options:

• A large informal sector can make it difficult for the government to track economic activity and collect taxes. This is because businesses in the informal sector are often not registered with the government and do not keep proper records. As a result, the government may not be able to identify all of the businesses that should be paying taxes. Additionally, businesses in the informal sector may be more likely to evade taxes, as they are less likely to be caught.
• Limited tax awareness can also make it difficult for the government to collect taxes. This is because people who are not aware of their tax obligations may not pay their taxes or may pay them incorrectly. Additionally, people who do not understand the tax system may be more likely to evade taxes.
• Tax evasion is a major challenge for governments, as it can lead to a loss of revenue. Tax evasion can be done by individuals or businesses. Individuals may evade taxes by underreporting their income or by claiming false deductions. Businesses may evade taxes by underreporting their sales or by claiming false expenses. Tax evasion can be a difficult problem to address, as it often involves complex financial transactions.

In conclusion, all of the options listed in the question can be challenges to Meghalaya’s tax collection efforts. The government of Meghalaya should take steps to address these challenges, such as increasing tax awareness, improving the tax system, and cracking down on tax evasion.