The primary source of tax revenue for the Gujarat government is:

The primary source of tax revenue for the Gujarat government is sales tax. In 2020-21, sales tax accounted for 42.7% of the state’s total tax revenue. Income tax was the second largest source of tax revenue, accounting for 29.2% of the total. Property tax and excise duty were the third and fourth largest sources of tax revenue, accounting for 12.2% and 11.9% of the total, respectively.

Sales tax is a tax on the sale of goods and services. It is levied by the state government and is collected by the state sales tax department. The rate of sales tax varies depending on the type of goods or services being sold. For example, the rate of sales tax on food items is lower than the rate of sales tax on luxury items.

Income tax is a tax on the income of individuals and businesses. It is levied by the central government and is collected by the central income tax department. The rate of income tax varies depending on the income of the individual or business. For example, the rate of income tax on individuals with an annual income of less than Rs. 2.5 lakh is lower than the rate of income tax on individuals with an annual income of more than Rs. 10 lakh.

Property tax is a tax on the value of property. It is levied by the local government and is collected by the local property tax department. The rate of property tax varies depending on the location of the property and the type of property. For example, the rate of property tax on residential property is lower than the rate of property tax on commercial property.

Excise duty is a tax on goods that are produced or manufactured in India. It is levied by the central government and is collected by the central excise duty department. The rate of excise duty varies depending on the type of goods being produced or manufactured. For example, the rate of excise duty on petrol is higher than the rate of excise duty on diesel.

The Gujarat government also earns revenue from other sources, such as stamp duty, registration fees, and user charges. However, sales tax is the largest source of tax revenue for the state government.