
With reference to the above graph, which of the following is/are the most logical and rational inference/ inferences that can be made?
1. During the given period, the revenue from Direct Taxes as percentage of gross tax revenue has increased while that of Indirect Taxes decreased.
2. The trend in the revenue from Excise Duty demonstrates that the growth of manufacturing sector has been negative during the given period.
Select the correct answer using the code given below:
Correct Answer: (a) 1 only
Note: 1. Corporate tax (......) and personal tax (-----) are direct taxes. From graph it is clear that corporate tax is increasing tremendously whereas personal tax increased slightly. Exercise (), customs (...) and service tax (-) are indirect taxes. From the graph, it is clear that exercise and customs decreased tremendously whereas service tax is increased.
Therefore, during the given period, the revenue from direct taxes as percentage of gross tax revenue has increased while that of indirect taxes decreased.
2. From the graph, it is clear that exercise duty is over all decreased tremendously. But after 2010, exercise duty increases slightly. This traineds of exercise duty has many reasons. One of then may be decreasing rate of exercise duty to promote manufacturing sector thats why after 2010 exercise duty increases slightly.