Which of the following is FALSE?
A)Tariffs are a relatively easy tax to administer and often form an important part of revenue for low-income countries.
B)Taxes on income,sales,and property require more complex accounting systems than do tariffs.
C)Low-income countries often have large informal markets with the sales of many goods and services not being recorded,which makes it difficult to apply many kinds of taxes.
D)Taxes on income and property run into powerful interest groups in low-income countries,which work to prevent the creation or payment of these taxes.
E)Tariffs are not an attractive tax option for most low-income countries,so they mostly rely on quota licenses for revenue.

Question

Quizplus · Accepted Answer

The statement that tariffs are not an attractive tax option for most low-income countries and that they mostly rely on quota licenses for revenue is false. Tariffs are often an important part of revenue for low-income countries and are relatively easy to administer, making them a more attractive option compared to other taxes that require more complex accounting systems. Additionally, while low-income countries may have large informal markets, this does not necessarily make it difficult to apply many kinds of taxes, as some taxes such as value-added tax (VAT) can be applied at the point of sale. Lastly, while taxes on income and property may face opposition from powerful interest groups in low-income countries, this does not mean that such taxes are impossible to create or implement.

Which of the Following Is FALSE