CIMA Financial Reporting F1 Question # 30 Topic 4 Discussion

CIMA Financial Reporting F1 Question # 30 Topic 4 Discussion

F1 Exam Topic 4 Question 30 Discussion:
Question #: 30
Topic #: 4

Country X levies a duty on alcoholic drinks. Where the alcohol content is above 40% by volume the duty levied is $5 per 1 litre bottle.

What type of tax is this duty?


A.

Specific unit tax


B.

Ad valorem tax


C.

Direct tax


D.

Single-stage sales tax


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