Question

is the tax imposed based on value of a transaction or of a property

• A. Ad valorem tax
• B. Specific tax
• C. Surcharge

Answer 1

The correct option is A Ad valorem tax

A per unit tax, or specific tax, is a tax that is defined as a fixed amount for each unit of a good or service sold, such as cents per kilogram. It is thus proportional to the particular quantity of a product sold, regardless of its price.

An ad valorem tax is a tax whose amount is based on the value of a transaction or of property. It is typically imposed at the time of a transaction, as in the case of a sales tax or value-added tax