Economics 0455 · IGCSE · Fiscal policy

Fiscal policy — practice question

A worker receives $\$40\,000$ per year and is charged $20\%$ income tax. He buys electrical goods worth $\$5000$ and a car for $\$10\,000$, with $20\%$ sales tax added to each purchase. What total indirect tax does he pay?

  • A$\$3000$
  • B$\$5000$
  • C$\$8000$
  • D$\$11\,000$

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