What is sales tax_____________?
Correct answer: A. Levied on the retail price of merchandise and collected by retailer
- A. Levied on the retail price of merchandise and collected by retailer
- B. Tax deducted at source
- C. Tax on local produce
- D. Tax on gross sale
Explanation
Sales tax is imposed on the sale price of goods and is commonly collected from the buyer by the retailer, who then pays it to the government. A tax deducted at source is a different collection method.
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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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