Question

KIIFB's debt servicing is supported by a statutorily mandated revenue stream. Which of the following is designated to be transferred directly to KIIFB?

• A. Entire Motor Vehicle Tax (MVT) and a portion of the Goods and Services Tax (GST).
• B. A fixed percentage of the state's lottery revenue and the entirety of the professional tax.
• C. Entire fuel cess (petroleum cess) and a portion of the Motor Vehicle Tax (MVT).
• D. All revenue from stamp duty and a quarter of the property tax.

Answer 1

Answer:

C. Entire fuel cess (petroleum cess) and a portion of the Motor Vehicle Tax (MVT).

• A major part of KIIFB's repayment mechanism is supported by a guaranteed revenue stream: the entire additional cess on petrol and diesel (fuel cess) and 50% of the Motor Vehicle Tax (MVT) collected in the state are transferred directly to KIIFB.