Principles of taxation - Jamb Economics Past Questions and Answers

Question 21:

• JAMB 1981

Progressive income tax can be expressed as

A. Tax that falls as income rises
B. Tax that rises as income falls
C. Tax that is independent of income
D. Tax that rises as income rises
E. Tax that is neutral to income

Question 22:

• JAMB 1982

Taxes which are levied on a person’s expenditures are known as?

A. Purchase tax
B. Sales tax
C. Direct tax
D. Poll tax
E. Income tax

Question 23:

• JAMB 1982

The PAYE (Pay As You Earn) in Nigeria is an example of?

A. Indirect tax
B. Progressive tax
C. Regressive tax
D. Community tax
E. Flat rate tax

Question 24:

• JAMB 1983

A greater burden of the taxes on essential goods is borne by the?

A. Middle income group
B. Higher income group
C. Lower income group
D. People falling between the middle and higher income groups
E. Top few richest people of the country

Question 25:

• JAMB 1984

In taxation, the benefit principle requires that?

A. Everybody must draw benefit from taxation
B. All those who earn more income must pay more taxes
C. Only those who derive benefit from services provided from public revenue should be taxed
D. Taxes paid by businesses should be shifted to those consumers benefiting from such consumer commodities
E. Everybody pays an equal amount