The correct answer is option 2, which states that corporation tax is imposed by the Central Government.

Option 1 suggests that state governments impose corporation tax. However, this is incorrect because corporation tax falls under the jurisdiction of the Central Government, not state governments.

Option 3 proposes that local governments impose corporation tax. However, local governments do not have the authority to impose corporation tax.

Option 4 suggests that both state and central governments impose corporation tax. However, this is incorrect because corporation tax is solely imposed by the Central Government.

It is important to note that corporation tax is a tax levied on the profits of businesses and corporations. The Central Government is responsible for collecting and managing this tax revenue.