Question

What is:

1.custom duties

2.VAT

3.frige benefit tax

Answer 1

Custom duties are taxes imposed by the state on goods and commodities purchased abroad. Thus, they are a source of revenue for the state through items that are imported into the country.

VAT is Value Added Tax. It is levied on goods, commodities and services on the basis of the value added to the product at each stage of production. The tax is paid by the consumer who purchases the product at each stage of the supply chain.

Fringe Benefit Tax- It is a form of tax levied upon the collective benefits received by the employees of a company. It is payable by the employer. It includes expenses under entertainment, employee welfare, conferences, conveyance, hospitality, hotels, telephone, etc.