Taxes 8

Question 1

what are taxes

Answer 1

money to fund the budget come from levying taxes from people and businesses within the country. everyone contributes to general well being of country

taxes = money collected from individuals and businesses in a country for use by government

Question 2

what are the types of taxes and describe them (pcefcv)

Answer 2

• personal income tax = paid by people on the income they earn
• corporate income tax = paid by companies on profit earned
• excise duties = additional tax paid on certain goods + services within country e.g. “sin tax” ( alcohol + cigarette tax)
• fuel levies = paid on petrol + diesel
• custom duties = paid on goods imported from other countries
• VAT (Value Added Tax) = a 14% tax on goods and services