ENTREPRENEURSHIP

Detailed explanation-1: -An ad valorem duty is expressed as a percentage of the value of the imported goods (e.g. 10% of value). A specific duty is not related to the value of the imported goods but to the weight, volume, surface, etc.

Detailed explanation-2: -Duty levied as a percentage of value of the services or goods being imported, rather than on their weight or the number of units.

Detailed explanation-3: -This tax is computed by multiplying the assessed value of the property by the millage rate applicable to each property. The millage rate is expressed as a multiple of 1/1000 of a dollar.

Detailed explanation-4: -An ad valorem tax is a tax based on the assessed value of an item, such as real estate or personal property. The most common ad valorem taxes are property taxes levied on real estate. The Latin phrase ad valorem means “according to value.” So all ad valorem taxes are based on the assessed value of the item being taxed.

Detailed explanation-5: -How is ad valorem tax calculated? It is calculated by multiplying the property’s assessed value with the tax rates applied. For example, if A buys a car worth $1000 and the rate applied is 4%, the tax applicable is 1000*4/100 = 1000*0.04 = $40.