Question

The annual yield from which of the following Union Government taxes is the highest?
A.Custom duties
B.Corporation tax and income tax
C.Inheritance tax, wealth tax, interest tax and gift tax
D.Excise duties

Answer 1

The annual yield from Excise duties ,Union Government taxes is the highest

Answer 2

Excise Duties generates the maximum yield amongst all Union Government Taxes.  

Answer: Option D.  

Explanation:  

Excise duties are the taxes that are applied to the goods manufactured in the country. This form of tax only considers the 'production process' and is not associated with the sale of goods. This tax is paid by the manufacturer and is not taken from the customers. It is an 'indirect tax' that generates significant income for the government. The present rate is '12.36%.'