Question

Which of the following is a direct measure to enhance tax revenue?

• A. Implementing a wealth tax on luxury assets.
• B. Reducing government spending on public services.
• C. Broadening the tax base by including more services and goods.
• D. Increasing subsidies for small businesses.

Answer 1

Answer:

C. Broadening the tax base by including more services and goods.

• Broadening the tax base brings more economic activities under the tax net, thereby increasing the total revenue collected without necessarily raising tax rates.