What tax is levied on the profits made from selling assets purchased at a lower price?

The correct choice is Capital Gains Tax, as this tax specifically applies to the profits made from the sale of assets that have appreciated in value since their purchase. When you sell an asset, such as stocks, real estate, or other investments, for more than what you paid for it, the profit realized is considered a capital gain. The government taxes this gain as income, hence the term "capital gains tax."

This tax is typically calculated based on the difference between the selling price and the purchase price of the asset. It is important to note that the rate at which capital gains are taxed may vary depending on how long the asset was held before the sale; short-term capital gains (for assets held for one year or less) are usually taxed at a higher rate than long-term capital gains.

In contrast, income tax generally applies to wages and salaries from employment rather than profits from asset sales. Property tax is levied on real estate based on its assessed value, while sales tax is imposed on the sale of goods and services at the point of sale. Thus, capital gains tax is the most appropriate tax associated with profit from the sale of an asset purchased at a lower price.