When you buy a gadget from the USA, which type of indirect tax do you pay to the government?
A
Excise duty
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B
Entertainment tax
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C
Wealth tax
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D
Customs duty
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Solution
The correct option is D Customs duty One of the indirect taxes levied on imported goods is the customs duty. For every product brought into our country, the customs have to be paid. Otherwise, it is called smuggling.