Multiple choice

Which of the following taxes is imposed on expenditure of tax payer?

  1. Capital gains tax

  2. Estate duty

  3. Income tax

  4. Import Duty
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

It is import duty. The import duty is charged for importing products from foreign countries. The importer sells the product to the consumer after adding it in the price of goods. Thus, when the consumer purchases that product, he has to incur the expenditure for purchasing that product and has to pay import duty as well. Hence, the import duty is imposed on expenditure of tax payer.

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