Question : Which of the following taxes is levied by the state government only?
Option 1: Wealth tax
Option 2: Entertainment tax
Option 3: Income tax
Option 4: Gift tax
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Correct Answer: Entertainment tax
Solution : The correct option is Entertainment tax .
The State List of the Seventh Schedule of the Indian Constitution grants states the authority to levy and collect taxes on entertainment. This indicates that the state governments have the power to impose and regulate taxes on entertainment activities like movies, theatres, visiting an amusement park, etc.
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