Taxation: UPSC Previous Year Questions (Indian Economy)
1 previous year UPSC Prelims question on Taxation (Indian Economy). Choose an option to see the answer and explanation.
Explanations state facts as of the year each question was asked; words like “recently” refer to that year.
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UPSC 2010Indian Economy · Taxation
Q1. 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?
Explanation
The share of excise duty in gross tax revenue saw a significant decline in the five years leading up to 2010. This was primarily due to the shift toward service tax and the rationalization of indirect taxes. The reduction in excise duty rates for essential goods, introduction of exemptions, and gradual steps toward the Goods and Services Tax (GST) framework also contributed to this trend. According to the Economic Survey 2009-10, excise duty collections as a percentage of total revenue declined as the government focused on reducing cascading effects in indirect taxation to promote industrial growth and exports. This shift in taxation policy marked the transition of India’s indirect tax structure to a more consumption-based taxation system. Note: If this question were asked today, excise duty has been largely replaced by GST for most goods, further reducing its contribution to tax revenue.
Answer key for these questions
Q
UPSC year
Correct answer
1
2010
(c) Excise duty
Frequently asked questions
How many previous year UPSC questions are there on Taxation?
This page covers 1 previous year UPSC Prelims GS Paper-I questions on Taxation (Indian Economy), asked from 1996 to 2025. Each has the correct answer and an explanation.
How should I use previous year UPSC questions for Prelims?
Attempt each question first, then open the answer and read the explanation for every option. Repeat by chapter, and track which statements UPSC reuses across years. Previous year questions show the exam pattern and difficulty level.
Which years are covered for Taxation?
Questions on Taxation (Indian Economy) are available for 15 years, from 1996 to 2025. Use the Year filter to practise a single paper.
