To raise funds, local governments can levy

To raise funds, local governments can levy

  • A.
    import duties
  • B.
    income taxes
  • C.
    Excise duties
  • D.
    rates
  • E.
    profits tax
Correct Answer: Option D
Explanation

Rates refer to local taxation, i.e., taxation levied by (or for) local government rather than central government.

They are usually proportional to the estimated rentable value of a business and domestic properties. It is one of the ways in which local government raise their capital.

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