Q. Consider the following statements:
1) India’s gross tax to GDP ratio has been less than 15% in the last 10 years
2) Indirect tax collection has been more than direct tax collection in the last 5 years.
Select the correct answer using the codes given below
Answer: A
Notes:
Statement 1 is correct. India’s tax to GDP ratio was 11.7% in 2021-22, which was atleast 23-year high.
Statement 2 is incorrect. India had been facing the criticism that indirect taxes are higher than direct taxes. However, in 2021-22, Direct taxes are 6.1% of GDP, and indirect taxes are 5.6%.
