Multiple choice

From which of the following taxes is the revenue to be collected difficult for government to anticipate?

  1. Income Tax

  2. Value Added Tax

  3. Corporate Tax

  4. Professional Tax
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

It is value added tax. The value added tax is to be charged on the value added in goods and services. It is difficult to estimate the demand for such products and services, as the prices of goods and services rise due to imposition of value added tax. Hence, it is very difficult to estimate the income from value added tax.

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