Explanation:

Both statements are incorrect.

• The Economic Survey 2022-23 submitted recently in Parliament said that Goods and Services Tax (GST) collection is showing a higher buoyancy than the pre-GST system.

What is Tax buoyancy?

• Tax buoyancy explains the relationship between the changes in government’s tax revenue growth and the changes in GDP.
• It refers to the responsiveness of tax revenue growth to changes in GDP.
• When a tax is buoyant, its revenue increases without increasing the tax rate.

It depends upon

• the size of the tax base;
• the friendliness of the tax administration;
• the rationality and simplicity of tax rates;

What is Tax Elasticity?

• It refers to changes in tax revenue in response to changes in tax rate.
• For example, how tax revenue changes if the government reduces corporate income tax from 30 per cent to 25 per cent indicate tax elasticity.

Hence option 4th is correct.