Taxation

Q6(a) Using Figure 1 on German tax revenue by source in 2022, explain how direct taxation differs from indirect taxation.

Q5 Pick the true statement about what the Laffer curve drawn for a rich economy plots.

Q7(e) Discuss the wider economic effects of Ghana adding a 35% top rate of income tax.

Q6(a) Draw on Figure 4 and your knowledge to explain how progressive and regressive taxes differ, given UK income tax rates for 2022–23 and 2023–24.

Q2 Deduce the type of tax system Hungary uses when the share of income taken stays constant.

Q7(e) Discuss the macroeconomic results for Pakistan of taxing its richest households more heavily.

Q3(a) From 2021–22 figures on the UK government’s tax receipts presented in a chart, select the conclusion those data support.

Q1(e) Evaluate how cutting taxes in the UK might play out at both micro and macro level.

Q3 Nigeria's 2021 levy of N10 on each litre of sugary drinks: identify the tax type (ad valorem tax / specific tax / income tax / corporation tax).

Q6(d) Discuss how the UK government might raise more tax revenue — a one-off wealth tax, reformed council tax, higher corporation tax — using Extract C.

Q8 For a country you select, evaluate probable macroeconomic consequences of raising the highest income tax rate, as Chile did from 35% to 40% in 2020.

Q4 Choose the likeliest consequence, for the Gini coefficient and Lorenz curve, of Spain lifting its highest income tax band to 47% from 45% in December 2020.

Q2 New Zealand planned a 4 cents per litre fuel tax rise from July 2020. Identify the type of tax being increased. (progressive / proportional / regressive / direct)

Q4 Using a diagram of the relationship between the tax rate and government tax revenue, identify the model represented. (J-curve / Phillips curve / Lorenz curve / Laffer curve)

Q7(e) Discuss, drawing on Extract A, measures a government might adopt to narrow income inequality at home.

Q7 Evaluate tax cuts as a route to faster growth, referring to the 2018 US reductions in corporation tax and top income tax rates.

Q9 Evaluate the likely macroeconomic effects of introducing an indirect tax in a developing country of your choice (context: Saudi Arabia and five neighbours introducing 5% VAT in January 2018).

Q4(b) With 2020 profits before tax of £500 000 and the proposed 17% rate in force, calculate the firm's corporation tax bill.

Q4(c) Give one explanation for corporation tax receipts rising after a reduction in the tax rate.

Q4(b) State what a direct tax is (2 marks).

Q4(c) Pick out the direct tax from four listed levies (VAT / Vehicle Excise Duty / corporation tax / alcohol duty).