Multiple choice

Tax on inherited properly is an example of:

  1. Sales Tax

  2. Income Tax

  3. Wealth Tax

  4. VAT
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Tax on inherited property is classified as Wealth Tax (or inheritance/estate tax) because it's levied on the transfer of accumulated wealth from one generation to another. Unlike Income Tax (on earnings), Sales Tax (on transactions), or VAT (on value added), inheritance tax targets the stock of wealth rather than flows of income or consumption.

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