UPSC Daily Current Affairs Quiz : 02 February 2026

Question 1: Consider the following sectors mentioned in the Budget as beneficiaries of customs duty reductions:

1. Marine products
2. Leather products
3. Textile products
4. Pharmaceutical exports

Question 2: Which of the following States were proposed to be supported for establishing rare earth corridors?

1. Odisha
2. Kerala
3. Andhra Pradesh
4. Tamil Nadu
5. Gujarat

Question 3:  With reference to the 16th Finance Commission’s recommendations on tax devolution, consider the following statements:

1. The vertical share of tax devolution to States has been retained at 41%.
2. The Centre reduced the States’ share, citing fiscal deficit pressures.
3. The divisible pool of taxes has shrunk due to rising cesses and surcharges.
   

Which of the statements given above is/are correct?

Question 4: Which of the following measures are aimed at improving ease of doing business in customs?

1. Duty deferral period extended to 30 days for tier-two and tier-three AEOs
2. Validity of advance ruling increased to five years
3. One-time concessional duty for SEZ units selling in the domestic tariff area
4. Mandatory physical verification for all imports

Select the correct answer:

Question 5: With reference to the Union Budget proposals for data centres and IT services, consider the following statements:

1. A tax holiday until 2047 has been proposed for foreign firms establishing data centres in India.
2. A safe harbour margin of 15% has been proposed for companies providing data services to related entities.
3. The safe harbour threshold for availing benefits has been reduced to encourage small firms.

Which of the statements given above is/are correct?