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Activity in Excise Tax

The document discusses different types of excise taxes: - Specific taxes based on physical units like weight or volume - Ad valorem taxes based on value, price, or cost of goods - Sin taxes and sumptuary taxes imposed on goods harmful to health - Green taxes imposed on pollutive products but not jewelry - Vanity taxes can be imposed on goods like jewelry but not champagne It provides examples calculating ad valorem taxes based on production costs and selling prices of cars. The final question calculates excise tax on a cosmetic surgery based on the fee and VAT rate.

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Lucy Heartfilia
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2K views

Activity in Excise Tax

The document discusses different types of excise taxes: - Specific taxes based on physical units like weight or volume - Ad valorem taxes based on value, price, or cost of goods - Sin taxes and sumptuary taxes imposed on goods harmful to health - Green taxes imposed on pollutive products but not jewelry - Vanity taxes can be imposed on goods like jewelry but not champagne It provides examples calculating ad valorem taxes based on production costs and selling prices of cars. The final question calculates excise tax on a cosmetic surgery based on the fee and VAT rate.

Uploaded by

Lucy Heartfilia
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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1.

Excise tax that are imposed based on weight or volume capacity or other physical unit of
measurement
a. Specific tax
b. Ad valorem tax
c. Quantitative tax
d. Metrical tax
A

2. The excise tax on certain excisable goods is a tax on


a. Person – the owner or producer of certain goods
b. Property – the goods produced on manufactured
c. Privilege – the right to enter into the business of producing or importing certain articles
d. Privilege – the right to transport certain goods.
A

3. Taxes imposed on substance known to harm health


a. Sin tax
b. Sumptuary tax
c. Green tax
d. Vanity tax
A

4. Taxes imposed to restrain luxury


a. Sin tax
b. Sumptuary tax
c. Green tax
d. Vanity tax
B

5. Which could not be considered a green tax?


a. Tax imposed upon mineral products
b. Tax imposed upon petroleum products
c. Tax imposed upon jewelry
d. Tax imposed upon quarry materials
C

6. Which could not be considered a vanity tax?


a. Tax imposed on jewelry
b. Tax imposed upon champagne
c. Tax imposed upon automobiles
d. Tax imposed upon cosmetic surgery
B

7-9. ABC Company is a VAT-registered car manufacturer. It had the following data on the manufacture
of a car model during a period of recession:
Production cost P1,000,000
Transport and other expenses of sale 200,000
Final selling price to customer 1,100,000
What is the basis of the ad valorem tax?
a. P1,000,000
b. P1,100,000
c. P1,200,000
d. P1,320,000
D
(P1,000,000 + P200,000) x 110% = 1,320,000

10-12. Bitrex Company sells sports car with selling prices ranging P2M to P20M. During the month, it
completed production of 2 units of the Tigris model with aggregate cost and wholesale price of P2M
and P6M, respectively.

What is the ad valorem tax?


a. P3.0M
b. P1.2M
c. PP600,000
d. P0
B
Unit selling price = (P6M/2 = P3M, taxable at 20%. Hence, P6M x 20% = P1.2M

13-15. Doc Mitsui, a VAT registered surgeon, conducted a cosmetic surgery on Miss Mitsubishi for
P1,200,000. The fee is agreed to be inclusive of VAT but exclusive of excise tax. What is the excise
tax?
a. P60,000
b. P57,143
c. P53,571
d. P50,000
C
P1.2M / 112% = P1,071,428.57 x 5% = P53,571

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