Economics 0455 · IGCSE · Fiscal policy

Fiscal policy — practice question

The table gives taxes as a percentage of Gross Domestic Product (GDP) for four countries. Using this data, which country had the largest percentage of direct taxation as a percentage of GDP?

  • Aincome tax $12\%$, tax on business profits $14\%$, tax on dividends $2\%$, tax on goods and services $5\%$
  • Bincome tax $14\%$, tax on business profits $15\%$, tax on dividends $2\%$, tax on goods and services $14\%$
  • Cincome tax $17\%$, tax on business profits $13\%$, tax on dividends $5\%$, tax on goods and services $10\%$
  • Dincome tax $18\%$, tax on business profits $10\%$, tax on dividends $1\%$, tax on goods and services $10\%$

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