An ad valorem customs duty is calculated mainly as a percentage of the:
Correct answer: A. Customs value of the goods
- A. Customs value of the goods
- B. Number of employees importing goods
- C. Profit earned by the importer
- D. Physical age of the shipment
Explanation
An ad valorem duty is based on the assessed value of imported goods. A duty charged at a fixed amount per kilogram or unit is a specific duty, not an ad valorem duty.
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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.
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