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Question

When you buy a gadget from the USA, what type of indirect tax do you pay to the government?

A
Sales tax
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B
Excise duty
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C
Customs duty
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D
Service tax
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Solution

The correct option is C Customs duty
One of the indirect taxes levied on imported goods is the customs duty. Every product that is brought into our country has to pay the customs. Otherwise, it is accounts to smuggling.

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