HomeEconomicsAd Valorem Tax is levied on the basis of which among the...

Ad Valorem Tax is levied on the basis of which among the following?

  1. Volume
  2. Value
  3. Production
  4. Export

Answer :

Value

Ad valorem tariff is calculated on the basis of the value of the imported good, expressed as a percentage of such value.

For example, an ad valorem tariff of 10% on an imported car worth US$ 10000 would lead to a requirement to pay US$ 1000 as customs duty.

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