Multiple choice

Which of the following taxes satisfies the canon of diversity?

  1. Corporate tax

  2. Value added tax

  3. Wealth tax

  4. None of these
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The value added tax satisfies the canon of diversity. The value added tax is imposed on the value added in the goods and services from the production to retail stage. Hence, value added tax is imposed on a variety of goods and services and rich as well poor people contribute to it. Thus, it satisfies the canon of diversity.

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