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Economics (AS & A Level) · Feb / March 2022 · Paper 12 · Question 17

9708Fiscal policy

Three types of tax are listed. • a sales tax (VAT) on fuel • a specific tax of 10% on cigarettes • the percentage of income tax on individual earnings increases as taxable income increases Which combination describes the effect of each of these types of tax?

  1. Aprogressive | progressive | regressive
  2. Bprogressive | regressive | progressive
  3. Cregressive | progressive | regressive
  4. Dregressive | regressive | progressive

As printed in the paper

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Correct answer: D. regressive | regressive | progressive

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