Neco Model Questions Vol1 2024 Economics Question 26
Practice objective / multiple choice question 26 from the 2024 Neco Model Questions Vol1 Economics examination.
The government intends to raise \(120\) million naira in personal income tax revenue. The tax schedule is: \(10\%\) on the first \(500{,}000\) naira of income, \(20\%\) on the next \(1{,}000{,}000\) naira, and \(30\%\) on any income above \(1{,}500{,}000\) naira. Each of the 200 taxpayers has an average annual income of \(2{,}000{,}000\) naira. (i) Calculate the total revenue that would be generated under the existing schedule. (ii) If the target is not met, determine the uniform additional surcharge (in percentage points) that must be added to each tax bracket so that the required revenue of \(120\) million naira is exactly achieved.
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About This Question
This is Neco Model Questions Vol1 2024 Economics Question 26. It is one of the objective questions from the 2024 Neco Model Questions Vol1 Economics examination.
Difficulty level: Medium .
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