In India, the tax proceeds of which one of the following as a percentage of gross tax revenue has significantly declined in the last five years?

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Q: 83 (IAS/2010)
In India, the tax proceeds of which one of the following as a percentage of gross tax revenue has significantly declined in the last five years?

question_subject: 

Economics

question_exam: 

IAS

stats: 

0,45,90,20,49,45,21

keywords: 

{'gross tax revenue': [0, 0, 2, 2], 'tax proceeds': [0, 0, 1, 1], 'corporation tax': [0, 1, 0, 2], 'personal income tax': [0, 0, 2, 0], 'service tax': [1, 0, 2, 0], 'india': [8, 1, 7, 13], 'percentage': [1, 2, 2, 3], 'excise duty': [0, 0, 0, 1]}

In India, the tax proceeds of Excise Duty as a percentage of gross tax revenue has significantly declined in the last five years.

Explanation:

Excise Duty is a tax on the production or manufacture of goods in India. It is levied by the Central Government and is a significant source of revenue for the government. However, in recent years, the contribution of Excise Duty to the gross tax revenue of the government has declined significantly.

This can be attributed to several factors, including the introduction of the Goods and Services Tax (GST) in 2017. GST is a comprehensive indirect tax that subsumed several indirect taxes, including Excise Duty. As a result, the revenue generated from Excise Duty has decreased, and the contribution of GST to the gross tax revenue has increased.

On the other hand, the tax proceeds of other taxes such as Service Tax, Personal Income Tax, and Corporation Tax have remained relatively stable over the last five years.

Therefore, the correct answer is Excise Duty.