Expanding the tax base
Improving tax collection efficiency
Attracting new businesses and investment
All of the above
Answer is Right!
Answer is Wrong!
The correct answer is: d) All of the above
The Sikkim government might aim to increase its revenue by:
- Expanding the tax base: This means increasing the number of people who are paying taxes and/or the amount of tax they are paying. This can be done by lowering the tax threshold, so that more people are required to pay taxes, or by increasing the rates of taxation.
- Improving tax collection efficiency: This means making it easier for people to pay their taxes and/or making it more difficult for people to avoid paying taxes. This can be done by simplifying the tax code, making it easier to file taxes, and cracking down on tax evasion.
- Attracting new businesses and investment: This means creating an environment that is attractive to businesses, such as by providing tax breaks or other incentives. This can lead to increased economic activity, which in turn can lead to increased tax revenue.
It is important to note that these are just some of the ways in which the Sikkim government might aim to increase its revenue. There are many other possible strategies that could be used, and the best approach will vary depending on the specific circumstances of the state.