This question is based on ‘The Lekki Headmaster’. How did Bepo view the transportation business in comparison to farming or retail businesses?

JAMB English Language 2024 152 views
Source: JAMB · 2024

This question is based on ‘The Lekki Headmaster’.

How did Bepo view the transportation business in comparison to farming or retail businesses?

  1. He saw it as more profitable.
  2. He found it less risky and easier to start. ✓
  3. He thought it would be more difficult to manage.
  4. He considered it too competitive.
Explanation

Tax types: direct (paid by person taxed – income tax, company tax) vs indirect (passed on in prices – VAT, customs duty). Progressive tax: rate increases with income. Regressive: same rate regardless of income.

Nigerian taxes: personal income tax (PAYE for employees), company income tax, VAT (7.5%), customs duties, petroleum profits tax. FIRS collects federal taxes; state boards collect state taxes.

Tax functions: raise revenue, redistribute income, encourage/discourage activities. Good tax system: adequate revenue, fair burden, simple, efficient collection. Tax evasion is illegal; avoidance uses legal loopholes.

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