The correct answer is: b) Improving tax administration and compliance.
Tax administration is the process of collecting taxes from taxpayers. Tax compliance is the act of taxpayers following the tax laws and regulations. Improving tax administration and compliance can widen the tax base in Manipur by ensuring that all taxpayers are paying their fair share of taxes.
Increasing tax rates can also widen the tax base, but it is a less efficient way to do so. This is because increasing tax rates can discourage economic activity and lead to a decrease in tax revenue.
Targeting the informal sector can also widen the tax base, but it is a difficult task. This is because the informal sector is made up of businesses that are not registered with the government and do not pay taxes.
Reducing exemptions can also widen the tax base, but it is a controversial approach. This is because exemptions are often used to encourage certain activities or to provide relief to low-income taxpayers.
In conclusion, the best way to widen the tax base in Manipur is to improve tax administration and compliance. This will ensure that all taxpayers are paying their fair share of taxes and will help to increase tax revenue.