Mr.A earns N300 and pays N15 in tax. Mr. B earns N100 and pays N6 in tax. This tax system can be described as?
proportional tax
progressive tax
competitive tax
excise tax
regressive tax
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Discussions (23)
Its totally correct,
for mr A 15/300 x 100/1=5%,
for mr B 6/100 x 100/1=6%,
mr A earns a higher income than mr B and mr B pays higher percentage of his income as tax;xo therefore it is a regressive tax system.
it's a progressive tax because the high income earner pays high while low income earner pay low
The answer is regressive,that is option"E".
Firstly,you need to convert the amount each of them was paying into percentage. So Mr A is paying 5% while collecting 300 and Mr B is paying 6%
Here is the correct explanation:
the correct answer is progressive tax, bcus in progressive tax system high income earners pay more dan d low income earners e.g PAYE pay as you earn, while in regressive tax system low incom earners pay high dan d high income earners, while in propotional tax system both d high nd low income earners pay d xame amount.
