Which of the following is a type of tax levied by the Government on goods and services??

a) SAT

b) NET

c) PAN

d) VAT

The correct option is D, i.e.VAT. It stands for Value Added tax.

Value added tax (VAT), or goods and services tax (GST), is a consumption tax levied on value added. In contrast to sales tax, VAT is neutral with respect to the number of passages that there are between the producer and the final consumer, where sales tax is levied on total value at each stage, the result is a cascade (downstream taxes levied on upstream taxes).

By definition, exports are consumed abroad and are usually not subject to VAT, VAT charged under such circumstances is usually refundable. This avoids downward pressure on exports and ultimately export derived revenue.

A VAT is an indirect tax, in that the tax is collected from someone who does not bear the entire cost of the tax.