Principles of taxation - Jamb Economics Past Questions and Answers

Question 11:

• JAMB 1979

Which of the following is not a direct tax?

A. Company income tax
B. Capital tax
C. Purchase tax
D. Personal income tax
E. Capital gain tax

Question 12:

• JAMB 1979

Which of the following is not an indirect tax?

A. Excise duty
B. Company tax
C. Import duty
D. Export duty
E. Sales tax

Question 13:

• JAMB 1979

If Mr A earns N2,000 a year while Mr B earns N8,000 but Mr a pays N200 in tax per annum while Mr B pays N400, such a tax is

A. Progressive
B. Indirect
C. Regressive
D. Proportional
E. None of the above

Question 14:

• JAMB 1979

An ad valorem tax means

A. Total amount of an income tax
B. A certain percentage on the value of a commodity
C. A certain percentage tax on the volume of commodity
D. A tax on capital gain
E. A profit tax

Question 15:

• JAMB 1979

The burden of tax on a commodity whose demand is infinitely inelastic

A. Is zero
B. Will be borne by the seller alone
C. Will be borne by the buyer alone
D. Will be borne by both buyer and seller
E. Is impossible to tell who bears it