Which of the following does NOT come under the purview of 'paper taxes'?

Question

Question

This question was previously asked in

SSC Matric Level Previous Paper (Held on: 10 Feb 2022 Shift 1)

Answer 1

The correct answer is Excise tax.

Important Points

Tax which carry their significance only on paper and have no significance in terms of revenue yield are called paper taxes.
Taxes like Gift tax, Estate duty, Wealth tax are paper taxes.
Excise duty is a form of tax imposed on goods for their production, licensing, and sale.
- It is an indirect tax.
Wealth tax:
- Levied on accumulated wealth or property of every individual.
- The tax was abolished in the 2016 budget.
Estate duty:
- It was imposed on the estate of a person which was inherited by him.
- The rate ranged from 4 to 40% of the value of the estate.
- It was imposed and collected by the central government but proceeds were passed on to states.
- It was abolished in March 1985 as the yield was too low.
Gift tax:
- Imposed in April 1958.
- Charged and collected every financial year on gifts received during the previous year.
- Again abolished in 1998 due to low yield.
Hence, Excise tax is the correct answer.