PPSCFPSCNTSPakistan govt jobs
- Subject
- Income Inequalityeconomics-mcqs › income-inequality
- Published
- 1 Jun 2019
- Last updated
- 28 May 2026
Which category of tax does VAT best represent?
Multiple choice question for Income Inequality. Select an option, then review the explanation below.
Explanation
VAT (Value Added Tax) is classified as an ad valorem tax because it is calculated as a percentage of the value of goods or services, unlike specific taxes which are fixed amounts.
More Income Inequality MCQs
Practice related questions from the same subject.
- 1.Which of the following best describes the Benazir Benefit Income Scheme?
- 2.When a tax can be transferred, what determines the actual burden of the tax?
- 3.What does tax incidence refer to?
- 4.What does a progressive income tax system imply about the tax rate for individuals with higher earnings?
- 5.What does the marginal tax rate represent?