Answer to Question #224102 in Macroeconomics for megs

Question

Which of the following statements is/are correct? A. Taxes can be levied on only two bases: income and consumption. B. The most important tax source in South Africa in 2014/15 was personal income tax. C. When the average tax rate increases as the income tax base increases, the tax rate structure is progressive. D. Direct taxes such as a tax on fuel cannot be shifted that easily.

Answer 1

 B. The most important tax source in South Africa in 2014/15 was personal income tax.

Personal income tax was the biggest revenue source for South Africa during 2014/15 as it contributed to 38.1% of total tax revenue.