What is called the tax that is levied on retail price of merchandise collected by retailer ?
Correct answer: A. Sales Tax
- A. Sales Tax
- B. General Tax
- C. Local Tax
- D. Gross Tax
Explanation
Sales tax is charged on the sale of goods and is collected from the customer by the retailer for payment to the government. The other labels are not standard names for this retail tax.
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About Public Finance
Government revenue and expenditure are analysed through taxation, public borrowing, budgets, subsidies, transfers and public debt. The topic explains how fiscal policy affects resource allocation, income distribution, economic stability and growth, while distinguishing direct from indirect taxes, progressive from regressive taxation, and public goods from goods supplied by private markets.
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