WAEC Economics 2007 Question 36

Question 36

Public Finance

Which of the following is an example of direct tax?

  1. A.Import duties
  2. B.Income tax
  3. C.Export duties
  4. D.Purchase tax.
Show the answer and explanation

Answer: B (Income tax)

Explanation

A direct tax is paid straight to government by the person who bears it, like income tax.