Practicing Success
In one of the budget, the Finance Minister proposed to raise the excise duty on "Alcohol". What was the objective of the government behind this move? |
Generation of revenue Achieving welfare Increasing the tax base of government Both 1 and 2 |
Both 1 and 2 |
The policy objectives adopted by the government is not just to earn revenue but also to achieve social welfare. The imposition of tax will raise the prices and would discourage the end consumer to purchase that commodity. Also, the increased revenue can be spend on education, welfare programs, health etc. |