Multiple choice

Which of the following taxes can be paid many times in the production of goods and services?

  1. Sales Tax

  2. Value Added Tax

  3. Custom Duty

  4. Excise Duty

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

It is Value Added Tax. The value added tax can be paid many times in the production of goods and services as it is paid each time the value is added to goods and services. For instance, in the manufacture of car, when the tyres are assembled the tax is charged; when steering is assembled, VAT is imposed for adding the value of steering. Same is the case with services.