A general tax which applies at each point of exchange of goods and service is?
- a specific tax
- an ad valorem tax
-
value added tax
- direct tax
The correct answer is: C
Explanation
value added tax is a tax on the amount by which the value of an article has been increased at each stage of its production or distribution. A value-added tax (VAT) is a consumption tax placed on a product whenever value is added at each stage of the supply chain, from production to the point of sale.