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The tax levied on gross sales revenue from business transactions is called
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- Turnover Tax
- Sales Tax
- Capital Gains Tax
- Corporation Tax
- Turnover Tax
Correct Option: A
A turnover tax is similar to a sales tax or a VAT, with the difference that it taxes intermediate and possibly capital goods. It is charged on gross sales revenue from business transactions. Unlike a sales tax, which is levied only on gross value at the point of retail sale, a turnover tax is levied on all intermediate transactions between businesses leading to and including the final sale.