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?
Answer & explanation
Correct answer: option 4
The correct answer is Option 4: Both 1 and 2
Explanation:
- Generation of revenue: Increasing excise duty on alcohol helps the government collect more revenue from its sales.
- Achieving welfare: Higher taxes on alcohol can discourage excessive consumption, promoting social welfare by addressing health and social issues related to alcohol consumption.