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i) Value added tax VAT
VAT is elastic because a slight change in VAT rate will lead to significant change in revenue to the Government from vat able goods. However, for zero and exempt goods, VAT is inelastic
ii) Income tax
For Body Corporate it is inelastic since the corporate tax rate is constant for individuals it is slightly elastic since a slight change in graduated scale rates does not have significant impact on the revenue to the Government.
iii) Customs and excise duty
Customs duty is elastic since a change in customs duty rate will led to a change in volume of imports leading to a change in Revenue to a government. Excise duty is inelastic since consumers will re-organize their spending in case of change of change in excise duty rate.
Wilfykil answered the question on February 26, 2019 at 06:19
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Date posted: February 26, 2019. Answers (1)
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Additional information:
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2. The company has not claimed capital allowance since it commenced operations.
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Date posted: February 26, 2019. Answers (1)
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Date posted: February 26, 2019. Answers (1)
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Date posted: February 26, 2019. Answers (1)
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Date posted: February 25, 2019. Answers (1)