Economics 0455 · IGCSE · Fiscal policy

Fiscal policy — practice question

A toy manufacturer purchased a $750\,000 consignment of raw plastic from a local supplier and turned it into toys. The toys generated total revenue of $1\,000\,000. The government required the company to pay tax on this transaction. Which tax is the company most likely to have to pay?

  • Acapital gains tax
  • Bgoods and services (value added) tax
  • Cimport duty
  • Dincome tax

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