A tax charged in proportion to the value of imported goods is?

A. specific duty
B. ad valorem
C. custom duty
D. excise duty

Correct Answer: Option B

B. ad valorem

Explanation

Ad valorem is a tax paid in proportion to the estimated value of the goods or transaction concerned. Charge levied as a percentage of value of the item it is imposed on, and not on the item’s quantity, size, weight, or other such factors.