WAEC Commerce 2016 Objective — Question 46

Question 46 of 50 from the West African Examinations Council (WAEC) Commerce 2016 Objective paper, with the correct answer and a full explanation.

46. A general tax which applies at each point of exchange of goods and service is A. a specific tax B. an ad valorem tax C. value added tax D. a direct tax

A. a specific tax
B. an ad valorem tax
C. value added taxCorrect
D. a direct tax

Explanation

Each seller adds one value or the other to the goods. That is the reason for charging value added tax at all levels of sales.

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