If Mr. A earns N2.000 a year while Mr. B earns N8000 but Mr. A pays N200 in tax per annum while Mr. B pays N400, such tax is_______

MahAsp

4 years ago

from the above question the answer is ( D ).
prove.

there are 3 types of tax which are.
progressive
regressive and
proportion.

let take explanation of regressive : is the system of taxation where the one with the highest income paid less tax while the one with the lower income paid more.
in summary the higher the income the lower the taxation.

consider their incomes and tax paid
Mr A earn 2,000 and paid 200
Mr B earn 8,000 and paid 400
therefore
Mr A = 200/2000*100= 10%
while
Mr B = 400/8000*100= 5%

Onyemuche2004

3 years ago

Progressive system of taxation is the higher you earn the higher the rate of taxation

clarion1

1 year ago

Its A