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Statement and Assumption

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Directions: In the question, a statement is given followed by two assumptions numbered I and II. An assumption is something supposed or taken for granted. You have to consider the statement and the following assumptions to decide which of the assumptions is implicit in the statement.

Statement:
The government has decided to levy 2 percent surcharge on tax amount payable for funding drought relief programmes.
Assumptions:
I. The government does not have sufficient money to fund drought-relief programmes.
II. The amount collected by way of surcharge may be adequate to fund these drought-relief programmes.

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A
Both the assumptions I and II are implicit.
💡 Explanation:

No government decides to impose extra taxes unless it assumes that the amount it has is insufficient to serve its purpose. Hence, I is implicit. II is also implicit; otherwise the government would have increased the levy from the targeted 2%.

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