Question:
The prominent source of revenue of the central government of Sri Lanka at present is
(1) taxes on income.
(2) taxes on production and expenditure.
(3) profits, dividends and interest.
(4) gross receipts of trading enterprises.
(5) lottery revenues.
Correct Answer:
(2)
Answer Explanation:
Sri Lanka’s tax system is heavily skewed towards indirect taxation. The vast majority of government tax revenue (historically around 80%) is generated through taxes on production and expenditure (goods and services), such as VAT, Excise Duties, and Customs Duties, rather than direct income taxes.
Topic: Public Finance Year: 2020
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