The correct answer is C) Commercial taxes (GST, excise, etc.).
Commercial taxes are the primary source of revenue for the Karnataka government. In 2020-21, commercial taxes accounted for 44% of the state’s total revenue. The other major sources of revenue for the state are income taxes (22%), grants from the central government (17%), and property taxes (11%).
Commercial taxes are levied on goods and services that are sold or consumed in the state. The most important commercial taxes in Karnataka are the value-added tax (VAT), the excise duty, and the luxury tax. The VAT is a tax on the sale of goods and services, while the excise duty is a tax on the manufacture of goods. The luxury tax is a tax on goods that are considered to be luxury items.
The Karnataka government collects commercial taxes through the Commercial Tax Department. The department has a network of offices across the state, and it is responsible for assessing, collecting, and auditing commercial taxes.
The revenue from commercial taxes is used to fund a variety of state government programs and services, including education, health, infrastructure, and social welfare.