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JAMB Economics 1982 Question 23

Question 23

Public Finance

The chief sources of Federal Government revenue in Nigeria are

  1. A.import duties, petroleum import tax, profit tax, royalties and government dividends
  2. B.personal income tax, excise tax and vehicle licenses
  3. C.export duties, personal income tax and royalties
  4. D.property income, sales tax and excise tax
  5. E.import duties, sales tax and poll tax.
Show the answer and explanation

Answer: A (import duties, petroleum import tax, profit tax, royalties and government dividends)

Explanation

The Federal Government earns most from customs duties and from oil (petroleum profit tax and royalties); income tax, vehicle licences and poll tax go mainly to states and local councils.