Question

______ are levied on the value of the commodities.

Options

• Specific taxes

• Ad valorem taxes

• Direct taxes

• Taxes on income

Answer 1

Ad valorem taxes are levied on the value of the commodities.

Explanation:

Ad valorem taxes are taxes that are levied based on the value of a commodity or product. The term "ad valorem" means "according to value" in Latin. This type of tax is calculated as a percentage of the price of the item, making it dependent on the item's value.