The sales tax you pay while purchasing a toothpaste is a ........

Economic Affairs Tax System

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The sales tax you pay while purchasing a toothpaste is a

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UPSC CSP Previous Year Paper (2014)

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Tax imposed by the Central Government

Tax imposed by the central Government but collected by the State Government.

Tax imposed by the State Government but collected by the Central Government.

Tax imposed and collected by the State Government.

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Explanation:

Before 2005, the tax that was levied by the state on the sale of various products was known as the sales tax.. Sale tax was a tax levied and collected by the State. The power to impose taxes on 'sale of purchase of goods other than newspaper' belongs to State (Entry list 54, State II)