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An ad valorem tax is imposed on_____?


Question

An ad valorem tax is imposed on_____?

Options

A) Exports

B) Imports

C) The Value of a Commodity

D) Special Commodities

The correct answer is C.

Explanation:

An ad valorem tax (Latin for "according to value") is a tax whose amount is based on the value of a transaction or of property. It is typically imposed at the time of a transaction, as in the case of a sales tax or value-added tax (VAT).


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Dicussion (1)

  • An ad valorem tax (Latin for "according to value") is a tax whose amount is based on the value of a transaction or of property. It is typically imposed at the time of a transaction, as in the case of a sales tax or value-added tax (VAT).

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