Neco Model Questions Vol1 2025 Government Question 4
Practice objective / multiple choice question 4 from the 2025 Neco Model Questions Vol1 Government examination.
A government introduces a luxury‑car tax of \(5\%\) on the market value of each car. The car market consists of \(200{,}000\) cars divided into three categories:\n\n- Category I: value > \(\text{₦}10\) million, representing \(30\%\) of cars, average value \(\text{₦}15\) million, compliance rate \(80\%\).\n- Category II: value between \(\text{₦}5\) million and \(\text{₦}10\) million, representing \(50\%\) of cars, average value \(\text{₦}7\) million, compliance rate \(60\%\).\n- Category III: value < \(\text{₦}5\) million, representing \(20\%\) of cars, average value \(\text{₦}3\) million, compliance rate \(40\%\).\n\nCompute the expected revenue from this tax.
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This is Neco Model Questions Vol1 2025 Government Question 4. It is one of the objective questions from the 2025 Neco Model Questions Vol1 Government examination.
Difficulty level: Hard .
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