Question

2. Which of the following sources yields the maximum revenue to the Union Government?

Answer 1

Answer:

the maximum revenue to the union government are:-

(a) Income Tax

(b) Property Tax

(c) Excise Duty

(d) Customs Duty

Answer 2

Answer: Union Excise Duties

Explanation: A Government receives money in the form of Government revenue. It earns revenue from taxes levied on the income,corporations , goods and services produced, import and exports etc.

The tax which generates the maximum revenue to the Union Government is the  Union Excise Duties

These duties shores up the maximum revenue for the Central Government and are placed on commo­dities manufactured within the country. However there are certain commodities which attract State excise only such as narcotic drugs and liquors.

Commodities like cotton, sugar, mill cloth, motor spirit, tobacco, matches and cement which provide important source of revenue to the Government.

Hope it helps.