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What is temporary tax levied to obtain additional revenue called?
Question

What is temporary tax levied to obtain additional revenue called?

A.

Cess

B.

Rate

C.

Fee

D.

Surcharge

Correct option is A

The correct answer is option (A) Cess
A cess is a temporary tax levied by the government to generate additional revenue for a specific purpose. It is usually imposed on top of existing taxes and is earmarked for a particular purpose, such as education, health, or infrastructure development
Information Booster:-
  • ​A rate refers to a local tax levied on property or other assets, often by municipal bodies, for local infrastructure and services.
  • A fee is a charge levied by the government or an authority in return for a specific service provided, such as registration fees, tuition fees, or licensing fees.
  • A surcharge is an additional tax levied on the existing tax amount for a specific purpose, but it is not earmarked for a particular fund. For example, a surcharge on income tax applies to individuals earning above a certain threshold.

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