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JAMB Economics 1981 Question 18

Question 18

Public Finance

Indirect taxes are taxes

  1. A.which are levied on the incomes and profits of individuals and firms
  2. B.whose incidence always falls on the consumer
  3. C.which are based on the progressive principle
  4. D.on casinos, airports and capital gains
  5. E.which are levied on people and economic units through the goods and services they purchase.
Show the answer and explanation

Answer: E (which are levied on people and economic units through the goods and services they purchase.)

Explanation

Indirect taxes are charged on goods and services, so people pay them when they buy those goods.