Question

Bellville, a medium size town in Bell-land, decides to build a dog park. To pay for the park Bellville puts a 10% tax on dog food. What type of tax is this? What principle is behind this tax? What is the goal (not to build a park) of this tax?

Answer 1

Answer:

1) Sales tax; Taxing for development

2) The principle behind the tax is that due to the demand requirement for a dog park in Bellville, the way for the government of the town to raise revenue to finance the required building of the dog park is to have mainly those who own dogs to contribute towards building of the park

3) The goal of the tax is to enable the government to sustainably meet the obligation of providing services and facilities to the residents of Bellville

Explanation: