Question

51. Consider the following statements

1. All ad valorem taxes are levied based on the determined value of the item being taxed.

2. A specific rate duty is a tariff levied in terms of a specific amount per unit, such as cents per kilogram.

Identify the correct statement/s.

• A. a) 1 only
• B. b) 2 only
• C. c) Both 1 and 2
• D. d) None of the above

Answer 1

The correct option is C

c) Both 1 and 2

Answer: C

Explanation: A specific rate duty is a tariff levied on imports, defined in terms of a specific amount per unit, such as cents per kilogram. By contrast, an ad valorem duty is a charge levied on imports defined in terms of a fixed percentage of value