Consider the following:
Statement I: Wealth tax in India was abolished in 2015 due to high collection costs outweighing the benefits.
Statement II: The abolition of wealth tax led to a significant decrease in tax revenue from high-net-worth individuals.
Which one of the following is correct in respect of the above statements?1
Both Statement I and Statement II are correct, and Statement II is the correct explanation for Statement I.
2
Both Statement I and Statement II are correct, but Statement II is not the correct explanation for Statement I.
3
Statement I is correct, but Statement II is incorrect.
4
Statement I is incorrect, but Statement II is correct.