passwella.
Menu

WAEC Commerce 1996 Question 37

Question 37

Government and Business

Tax levied on goods at each stage of their movement from production to the final consumer is known as

  1. A.customs drawback
  2. B.ad valorem duty
  3. C.specific tax
  4. D.value added tax
  5. E.tariff
Show the answer and explanation

Answer: D (value added tax)

Explanation

VAT is charged on the value added at each stage of production and distribution.