An ad valorem tax is imposed on
ECONOMICS
JAMB 2012
An ad valorem tax is imposed on
- A. special commodities
- B. exports
- C. imports
- D. the value of a commodity
Correct Answer: D. 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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