Multiple choice

Which of the following is an example of non- ad valorem tax?

  1. Excise Duty

  2. Value Added Tax

  3. Import duty

  4. None of these
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A Correct answer
Explanation

It is an example of non-ad valorem tax. The non-ad valorem tax is charged not on the value, but on the other factors such as weight, price etc. The excise duty charged is the tax based on the cost of goods manufactured and not on its value. Hence, excise duty is an example of non-ad valorem tax.

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