JKSSB Mock Tests

Why are wealth taxes and gift taxes treated as paper taxes in India?

A. Tax payers need to fill out forms only in paper and submit returns.
B. It is not mandatory for the government to collect these taxes.
C. They do not generate much revenue in comparison to others.
D. They are paid only by government employees, members of the Parliament and Legislative assemblies.
Answer: Option C
Solution (By JKSSB Mock Tests Team)
They were often termed "paper taxes" because the administrative cost of collecting them was disproportionately high compared to the actual meager revenue they generated for the exchequer.
This Question Belongs to: General knowledge mcqs Economics set 1

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