Question:
The main contributors to significant rise in tax revenue in Sri Lanka after the year 2022 were
(1) income taxes, import duties and economic service charge.
(2) special commodity levy, income taxes and value added tax.
(3) income taxes, value added tax and excise duties.
(4) taxes on foreign trade, value added tax and special commodity levy.
(5) ports and airports development levy, nation building tax and value added tax.
Correct Answer:
(3)
Answer Explanation:
Following the economic crisis in 2022, Sri Lanka implemented severe fiscal consolidation measures. The dramatic increase in government revenue was primarily driven by massive hikes in the Value Added Tax (VAT) rate, sweeping expansions to corporate and personal Income Taxes, and increased Excise Duties.
Topic: Public Finance Year: 2024
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