Luxury Tax – NBC Institute

TAX – Nov 2020 – L1 – SA – Q5a – Taxation of Specialized Businesses

State the benefits of imposing taxes on luxury goods and services.

Question

Luxury tax can simply be defined as tax imposed on goods and services that are considered by the government to be luxury goods and services. Luxury goods and services are those that are not considered to be essential by the government and which are consumed by the rich or wealthy class of the society.

Goods and services that are classified as luxury are usually assessed to tax as a percentage of the sales price but likely at a higher percentage than the regular sales tax or value added tax on essential commodities.

Required:
State FOUR benefits of taxation of luxury goods and services.
(8 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Government Revenue, Luxury Tax, Non-Essential Goods, Taxation Benefits
Level: Level 1

Topic: Taxation of Specialized Businesses
Series: NOV 2020

TAX – May 2021 – L1 – SA – Q15 – Tax Administration and Enforcement

Objective question on the type of tax imposed on non-essential goods and services.

Question

ax imposed on goods and services that are considered to be non-essentials is:
A. Excise duty
B. Value added tax
C. Non-essential tax
D. Luxury tax
E. Essential tax

Answer

Find Related Questions by Tags, levels, etc.

Tags: Excise Duty, Luxury Tax, Non-Essential Goods, Taxation, VAT
Level: Level 1

Topic: Tax Administration and Enforcement
Series: MAY 2021

TAX – Nov 2020 – L1 – SA – Q5a – Taxation of Specialized Businesses

State the benefits of imposing taxes on luxury goods and services.

Question

Required:
State FOUR benefits of taxation of luxury goods and services.
(8 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Government Revenue, Luxury Tax, Non-Essential Goods, Taxation Benefits
Level: Level 1

Topic: Taxation of Specialized Businesses
Series: NOV 2020

TAX – May 2021 – L1 – SA – Q15 – Tax Administration and Enforcement

Objective question on the type of tax imposed on non-essential goods and services.

Question

ax imposed on goods and services that are considered to be non-essentials is:
A. Excise duty
B. Value added tax
C. Non-essential tax
D. Luxury tax
E. Essential tax

Answer

Find Related Questions by Tags, levels, etc.

Tags: Excise Duty, Luxury Tax, Non-Essential Goods, Taxation, VAT
Level: Level 1

Topic: Tax Administration and Enforcement
Series: MAY 2021

Question Tag: Luxury Tax

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TAX – Nov 2020 – L1 – SA – Q5a – Taxation of Specialized Businesses

State the benefits of imposing taxes on luxury goods and services.

TAX – May 2021 – L1 – SA – Q15 – Tax Administration and Enforcement

Objective question on the type of tax imposed on non-essential goods and services.

TAX – Nov 2020 – L1 – SA – Q5a – Taxation of Specialized Businesses

State the benefits of imposing taxes on luxury goods and services.

TAX – May 2021 – L1 – SA – Q15 – Tax Administration and Enforcement

Objective question on the type of tax imposed on non-essential goods and services.

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Question Tag: Luxury Tax

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TAX – Nov 2020 – L1 – SA – Q5a – Taxation of Specialized Businesses

State the benefits of imposing taxes on luxury goods and services.

You're reporting an error for "TAX – Nov 2020 – L1 – SA – Q5a – Taxation of Specialized Businesses"

TAX – May 2021 – L1 – SA – Q15 – Tax Administration and Enforcement

Objective question on the type of tax imposed on non-essential goods and services.

You're reporting an error for "TAX – May 2021 – L1 – SA – Q15 – Tax Administration and Enforcement"

TAX – Nov 2020 – L1 – SA – Q5a – Taxation of Specialized Businesses

State the benefits of imposing taxes on luxury goods and services.

You're reporting an error for "TAX – Nov 2020 – L1 – SA – Q5a – Taxation of Specialized Businesses"

TAX – May 2021 – L1 – SA – Q15 – Tax Administration and Enforcement

Objective question on the type of tax imposed on non-essential goods and services.

You're reporting an error for "TAX – May 2021 – L1 – SA – Q15 – Tax Administration and Enforcement"

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