Which statement below is INCORRECT?

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Taxes on cross-border trade constitute the primary revenue source for low-income nations with limited administrative abilities.Import tariffs can be effective in limiting the consumption of luxury items.Many least developed countries (LDCs) have implemented value-added taxes to generate a significant portion of their income.Cascade tax, classified as a progressive tax, is commonly used in developed countries.

Explanation

Option A is true because international trade taxes are a key revenue stream for low-income countries with weak tax systems. Option B is correct since import duties can reduce luxury goods consumption. Option C is accurate as several LDCs have adopted value-added taxes to raise considerable revenue. However, Option D is false because cascade tax is not a progressive tax and is not predominant in developed countries.