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JAMB Economics 1982 Question 15

Question 15

Public Finance

Taxes which are levied on a person's expenditures are known as

  1. A.purchase tax
  2. B.sales tax
  3. C.direct tax
  4. D.poll tax
  5. E.income tax.
Show the answer and explanation

Answer: A (purchase tax)

Explanation

A purchase tax is charged on what people buy, so it falls on their spending rather than on their income.