Discussion
The contribution of indirect taxes to the combined tax revenue of the Centre and the states is approximately
Answer: D
Indirect taxes contribute about 86 per cent of the combined tax revenue.
Taking the Centre and the states together, the great bulk of tax revenue has historically come from indirect taxes - excise, customs, sales tax and now GST. This makes the Indian tax structure regressive, since indirect taxes fall on rich and poor alike as a proportion of what they spend.
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