An ad valorem tax is imposed on_____?
ECONOMICS
JAMB 2018
An ad valorem tax is imposed on_____?
- A. Exports
- B. Imports
- C. The Value of a Commodity
- D. Special Commodities
Correct Answer: C. The Value of a Commodity
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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