The correct answer is: B) Sales Tax (VAT)
Sales tax is a consumption tax levied on the sale of goods and services. It is a major source of revenue for the Kerala government, accounting for about 30% of total tax revenue. The state government levies a sales tax of 5% on most goods and services, with some exceptions such as essential commodities and healthcare services.
Income tax is a tax on the income of individuals and businesses. It is a major source of revenue for the central government, but it also contributes to the revenue of state governments. The Kerala government collects income tax on the income of its residents, but it does not have the power to set its own rates.
Land revenue is a tax on the value of land. It is a major source of revenue for rural local governments in Kerala. The state government does not collect land revenue directly, but it does set the rates that are charged by local governments.
Corporate tax is a tax on the profits of businesses. It is a major source of revenue for the central government, but it also contributes to the revenue of state governments. The Kerala government collects corporate tax on the profits of businesses that are registered in the state, but it does not have the power to set its own rates.
In conclusion, the main source of tax revenue for the Kerala government is sales tax. Sales tax is a consumption tax levied on the sale of goods and services. It is a major source of revenue for the state government, accounting for about 30% of total tax revenue.