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Mr. Patrick’s income is N900 while that of Mr. Shodawe is N1,300. if Mr. Patrick...

Economics
JAMB 2015

Mr. Patrick’s income is N900 while that of Mr. Shodawe is N1,300. if Mr. Patrick and Shodawe pay N90 and N130 as taxes, the tax system is

  • A. Direct
  • B. Progressive
  • C. Regressive
  • D. Proportional
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Correct Answer: Option D
Explanation

A Proportional tax applies the same tax rate to all individuals regardless of income.  

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Post-UTME Past Questions - Original materials are available here - Download PDF for your school of choice + 1 year SMS alerts