What is the Value Added Tax (VAT)?

[A] A single tax that replaces State Taxes like surcharge, turnover tax, etc.
[B] A simple, transparent, easy to pay tax imposed on consumers.
[C] A new initiative taken by the government to increase the tax burden of high income groups.
[D] A new tax to be imposed on the producers of capital goods.

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This question is part of UPSC Prelims Practice and Mock Tests membership programme.