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JAMB Economics 1988 Question 37

Question 37

Public Finance

Which of the following would most likely be considered an example of benefit taxation?

  1. A.Excise tax
  2. B.Corporate income tax
  3. C.Property tax
  4. D.Highway-user tax.
Show the answer and explanation

Answer: D (Highway-user tax.)

Explanation

Under the benefit principle, those who use a service pay for it; a highway-user tax is paid by road users.