Mr. Patrick’s income is N900 while that of Mr. Shodawe is N1,300. if Mr. Patrick and Shodawe pay N90 and N130 as taxes, the tax system is

Analyze the question: We are given two people's incomes and the tax each pays. We need to identify the type of tax system by comparing the tax as a percentage of income.

Concept:

• Progressive tax: the rate (percentage) increases as income increases.
• Regressive tax: the rate decreases as income increases.
• Proportional tax: the rate stays the same at all income levels.
• Direct tax: a classification by who bears the burden (e.g. income tax). It is not a classification by how the rate changes with income.

Solution:

Mr. Patrick: Tax rate = (90 / 900) × 100 = 10%

Mr. Shodawe: Tax rate = (130 / 1,300) × 100 = 10%

Both people pay the same percentage of their income, even though their incomes differ. The tax rate does not change as income rises, so the system is proportional.

Why not the others?

• B (Progressive): the rate would have to rise with income. It stays at 10%.
• C (Regressive): the rate would have to fall with income. It doesn't.
• A (Direct): the question is about how the rate behaves, not who bears the tax.

Tip: For tax-type questions, always compute tax ÷ income × 100 for each person.

• Rate rises → progressive
• Rate falls → regressive
• Rate is equal → proportional