As per the Budget Estimates of 2019-20, the following are some of the

As per the Budget Estimates of 2019-20, the following are some of the important sources of tax receipts for the Union Government:

Corporation Tax
Taxes on Income other than Corporation Tax
Goods and Services Tax
Union Excise Duties

Which one of the following is the correct descending order of the foresaid tax receipts as a percentage of GDP?

1, 2, 3, 4

1, 3, 2, 4

3, 2, 1, 4

2, 4, 3, 1

Answer is Right!

Answer is Wrong!

This question was previously asked in

UPSC CDS-2 – 2020

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Based on the Union Budget Estimates for 2019-20, the major sources of tax revenue for the Union Government, in descending order as a percentage of GDP (or equivalently, as a percentage of total tax revenue), were Corporation Tax, followed closely by Taxes on Income (other than Corporation Tax, i.e., Personal Income Tax), then Goods and Services Tax (Centre’s share), and finally Union Excise Duties. The order 1, 2, 3, 4 corresponds to Corporation Tax, Taxes on Income, GST, and Union Excise Duties.

In the BE 2019-20, the relative shares of gross tax revenue were approximately 31% from Corporation Tax, 26% from Income Tax, 23% from GST (Centre’s share), and 12% from Union Excise Duties. This confirms the descending order: Corporation Tax > Taxes on Income > GST > Union Excise Duties.

While the percentages are of total tax revenue rather than GDP directly, the relative order of these major taxes as a proportion of GDP collected by the centre would remain the same. This distribution reflects the structure of India’s central government tax base in that period.

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