Ad – Valorem Duty

• An ad valorem tax is a tax whose amount is based on the value of a transaction or of property.
• It is typically imposed at the time of a transaction, as in the case of a sales taxor value-added tax (VAT).
• An ad valorem tax may also be imposed annually, as in the case of a real or personal property tax, or in connection with another significant event (e.g. inheritance tax, expatriation tax, or tariff).
• In some countries, stamp duty is imposed as an ad valorem tax.

Source: Sriram IAS