JSS 1 Business Studies Flashcards: Objectives and Types of Taxes in Nigeria

Question 1

Government needs money to run schools, hospitals and other services. State the taxation objective involved.

Accepted Answer

raising government revenue

Question 2

A new bridge is built with tax receipts. How does this show taxation supporting development?

Accepted Answer

by funding infrastructure and services

Question 3

How can taxation redistribute wealth for broad public benefit?

Accepted Answer

by using revenue for broad public benefit

Question 4

A high levy makes a harmful product less attractive to buyers. What taxation function is being used?

Accepted Answer

regulation of economic activity

Question 5

An employee pays tax straight to the relevant authority on assessed income. How is this direct tax defined?

Accepted Answer

a tax paid directly by the person or organisation assessed

Question 6

VAT reaches government through the seller as part of a purchase price. How is this indirect tax defined?

Accepted Answer

a tax collected through the price of goods or services

Question 7

Personal income tax is charged on what?

Accepted Answer

an individual’s taxable income

Question 8

Company income tax is charged on what?

Accepted Answer

a company’s taxable profit

Question 9

VAT is generally charged on what?

Accepted Answer

the value of taxable goods and services

Question 10

Customs duty applies mainly to what goods?

Accepted Answer

goods crossing national borders

Question 11

A levy on owning or transferring land belongs to which class of tax? Choose from: property, environmental, income, or customs tax.

Accepted Answer

property tax

Question 12

A levy is designed to make polluters bear environmental costs. Classify it.

Accepted Answer

environmental tax

Question 13

A customer sees the tax only as part of the final shop price. This is most likely a ____.

Accepted Answer

indirect tax

Question 14

PAYE is deducted from an employee's taxable earnings. Name the type of tax involved.

Accepted Answer

personal income tax

Question 15

A trader brings goods into Nigeria and pays at the border. The payment is ____.

Accepted Answer

customs duty

Question 16

Why does government need tax revenue?

Accepted Answer

to provide public goods and services

Question 17

Using tax-funded programmes to narrow economic inequality is called ____.

Accepted Answer

redistribution of wealth

Question 18

What key issue distinguishes direct tax from indirect tax?

Accepted Answer

who bears and remits the tax

Question 19

A supermarket adds VAT to a taxable sale and remits it. Who bears the amount in the purchase price?

Accepted Answer

the consumer

Question 20

Roads, public schools and hospitals share what major source of public finance?

Accepted Answer

tax revenue

Strong work.