Cima F1 Exam Question No 56

Question No 56:

Which one of the following could be said to be a progressive tax?

A. Property sales tax at 1% of the selling price of all properties sold.
B. Value added tax at a rate of 0%, 10% or 15% depending on the type of goods or services provided.
C. Corporate wealth tax at 2% of total net assets up to $10 million then at 0.5% on total net assets greater than $10 million.
D. Personal income tax at 10% on earnings up to $10,000, then at 15% from $10,001 up to $100,000 and 25% over $100,000

Answer: D