CUET Preparation Today
What impact of "Tax reforms" was seen in the year 1991, when New Economic Policy was introduced? |
Corporate tax was increased Tax system became complex but efficient Both 1 and 2 None of the above |
None of the above |
The correct answer is option 4: None of the above In 1991, during the introduction of the New Economic Policy, tax reforms aimed to simplify the tax system, reduce corporate tax rates, and make the system more efficient. The reforms focused on broadening the tax base, reducing tax rates, and eliminating unnecessary complexities to encourage compliance and boost revenue collection. Therefore, neither corporate tax was increased nor did the tax system become more complex. Infact,the rate of corporation tax, which was very high earlier, was gradually reduced and efforts were made to simplify the taxation system so that better compliance on the part of taxpayers could be seen. |
