Ad valorem is a Latin term that is often used in business, finance, and taxation. It refers to a type of tax or fee that is calculated as a percentage of the value of the item being taxed. In this article, we will explore the definition, origin, meaning, associations, synonyms, antonyms, and example sentences of ad valorem.
Definitions
Ad valorem is a Latin phrase that means “according to value.” It is a type of tax or fee that is calculated as a percentage of the value of the item being taxed. For example, if the ad valorem tax rate is 2%, and the value of the item being taxed is $100, then the tax would be $2.
Origin
The term ad valorem has its origins in Latin, where it means “according to value.” The term has been used in English since the 16th century and is commonly used in business, finance, and taxation.
Meaning in different dictionaries
According to the Oxford English Dictionary, ad valorem means “in proportion to the value of the goods or property concerned.” The Merriam-Webster Dictionary defines ad valorem as “imposed at a rate based on a percentage of the value of the property or goods subject to tax.”
Associations
Ad valorem is often associated with taxes, fees, and tariffs. It is commonly used in international trade to calculate the value of goods and to determine the amount of taxes and tariffs that must be paid.
Synonyms
Some synonyms of ad valorem include proportional tax, value-added tax, and percentage tax.
Antonyms
There are no direct antonyms of ad valorem, but some related terms include fixed tax, flat tax, and lump-sum tax.
The same root words
The root words of ad valorem are ad, which means “to” or “towards,” and valorem, which means “value.” These same root words are also found in other Latin phrases, such as ad hoc, which means “for this purpose only,” and ad infinitum, which means “to infinity.”
Example Sentences
- The ad valorem tax on imported goods is 5% of the value of the goods.
- The company was required to pay an ad valorem fee of 2% on the value of its assets.
- The ad valorem tariff on steel imports has been increased by 10%.
Ad valorem is a Latin term that is commonly used in business, finance, and taxation. It refers to a type of tax or fee that is calculated as a percentage of the value of the item being taxed. This article has explored the definition, origin, meaning, associations, synonyms, antonyms, and example sentences of ad valorem.