A tax charged at a fixed amount for every kilogram of an imported product is an example of a:
Correct answer: A. Specific duty
- A. Specific duty
- B. Ad valorem duty
- C. Capital gains tax
- D. Withholding tax
Explanation
A specific duty is imposed as a fixed amount per physical unit, such as a kilogram, litre or item. An ad valorem duty instead varies with the value of the goods.
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About Taxation
Taxation covers the principles used to assess and collect taxes from individuals, businesses and transactions, with emphasis on income tax and sales tax concepts in Pakistan. Questions involve taxable income, exemptions, deductions, tax liability, withholding, returns, assessment, tax avoidance versus evasion, and the distinction between direct and indirect taxes.
Practise Taxation
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