Practicing Success
Practicing Success
CUET Preparation Today
| Which of the following is NOT an example of ad valorem tax? |
property tax goods and services tax value added tax Excise duty on petrol |
| Excise duty on petrol |
| Ad valorem is a Latin phrase that translates to “according to the value.” The essential characteristic of ad valorem tax is that it is proportional to the value of the underlying asset, unlike a specific tax, where the tax amount remains constant, irrespective of the underlying asset's value. The most common ad valorem tax examples include property taxes on real estate, sales tax on consumer goods, and VAT on the value added to a final product or service. Excise duty is levied by the Government on Petrol/diesel at a fixed rate per liter. |
