Answer: Option D
Answer: (d)
The tax base is defined as the total value of the financial streams or assets on which tax can be imposed by the government.
For example, in the case of income tax, the tax base is the minimum amount of annual income that can be taxed by the government (taxable income). If this minimum amount (tax threshold) is lowered, this will automatically increase (widen) the tax base; if it is raised, the tax base will be narrowed.
In the case of GST, the tax base is the value of goods and services on which GST is imposed.
In the case of property tax, the tax base is the value of the property on which property tax is imposed. Because the size of the tax base influences the taxable revenues that are available to a government, the size and growth of the tax base is crucial to the planning efforts of any government.