CAF-2 · Chapter 1 · Question 2 of 13
Which of the following situations best represents the use of taxation as a non-revenue objective?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) C) Providing tax exemptions to software exports to promote the software industry.
Explanation
While taxes primarily finance government expenditures, providing exemptions to software exports serves the non-revenue objective of promoting the software industry and economic development.
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