A challenge to tax collection in Arunachal Pradesh is:

The correct answer is: All of the above.

Arunachal Pradesh is a state in north-eastern India. It is the largest state in the country by area, but it has a very small population. The state has a limited formal economy, with a large proportion of the population engaged in subsistence agriculture. The terrain in Arunachal Pradesh is difficult, with many mountains and forests. This makes it difficult to access many parts of the state, and it also makes it difficult to collect taxes. There is also a lack of awareness about tax laws in Arunachal Pradesh, which makes it difficult for the government to collect taxes.

Here is a brief explanation of each option:

• Limited formal economy: The formal economy is the part of the economy that is regulated by the government. It includes businesses that are registered with the government and pay taxes. In Arunachal Pradesh, the formal economy is very small. This is because there are not many businesses in the state, and those that do exist are often small and informal. This makes it difficult for the government to collect taxes from businesses.
• Difficult terrain: The terrain in Arunachal Pradesh is difficult, with many mountains and forests. This makes it difficult to access many parts of the state, and it also makes it difficult to collect taxes. The government needs to have a physical presence in order to collect taxes, but this is difficult to do in a state with such difficult terrain.
• Lack of awareness: There is also a lack of awareness about tax laws in Arunachal Pradesh. This makes it difficult for the government to collect taxes. Many people in the state are not aware of the taxes that they are supposed to pay, and they may not be able to afford to pay them. The government needs to do more to educate people about tax laws in order to increase tax compliance.