Value added tax (VAT):

General Knowledge / Most Important Abbreviations — Multiple-choice practice

  1. A. Will Result in Taxing The Rich More
  2. B. Will Result in Distribution of income From Rich to Poor
  3. C. Will Apply On Rich And Poor Equally
  4. D. Is A Direct Tax

Correct answer

Will Apply On Rich And Poor Equally

Explanation

Explanation Direct Taxes that are directly paid to the government by the taxpayer. It is a tax applied on individuals and To Pool organizations directly by the government e.g. income tax, corporation tax, wealth tax etc.Indirect Taxes are applied on the manufacture or sale of goods and services.

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