Question

Ad-valorem tax is based on ___________.

• A. income
• B. real value of goods
• C. money value of goods
• D. volume of goods

Answer 1

Answer: (C)

money value of goods

An ad-valorem tax is a tax based on the value of the good or property. It is more common than a specific duty, which is a tax based on the quantity of an item. An ad-valorem tax is typically imposed at the time of transaction on the value of the transaction, but it may be imposed on an annual basis or in connection with another significant event related tariffs.