A _________ tax is a tax on raw material (such as oil and natural gas)when they are extracted from their natural state.

Question

Quizplus · Accepted Answer

A severance tax is a tax on the removal of non-renewable resources from the ground, such as oil, gas, coal, and minerals. This tax is levied on the entities that extract these resources and is intended to compensate for the depletion of natural resources and to generate revenue for the government. Unlike general or selective sales taxes, severance taxes are specific to certain types of goods and industries.

A _________ Tax Is a Tax on Raw Material (Such