McqMate
| Q. |
Ad Valorem tax is levied - |
| A. | according to value added by the Government. |
| B. | according to value addition to a commodity |
| C. | according to value given by producers |
| D. | according to value added by the finance ministry |
| Answer» C. according to value given by producers | |
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Explanation: An ad valorem tax (Latin for "according to value") is a tax based on the value of real estate or personal property. It is more common than a specific tax, a tax based on the quantity of an item, such as cents per kilogram, regardless of price. It is levied on the basis of value given by producers. So sometimes, the primary difficulty with such taxation, especially in the case of tariffs, is in establishing a satisfactory value figure. |
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