Which of the following is the odd one out?
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → Excise tax
Land revenue, stamp fee and registration fee are production taxes: they do not depend on the volume of production. Excise tax is paid per unit, so it is a product tax, the odd one out.
NCERT (2026-27): “2.2.4 Factor Cost, Basic Prices and Market Prices … Production taxes and subsidies are paid or received in relation to production and are independent of the volume of production such as land revenues, stamp and registration fee. Product taxes and subsidies, on the other hand, are paid or received per unit or product, e.g., excise tax, service tax, export and import duties etc. Factor cost includes only the payment to factors of production, it does not include any tax. …” |