JAMB Economics 2019 Paper

Concept:A digressive tax combines the features of a progressive tax and a regressive tax in one system.Explanation:In a digressive tax system, the tax rate rises as income increases, but only up to a certain limit.At lower income levels, the increase in the tax rate is mild, so the tax is mildly progressive.At higher income levels, the tax rate stops rising or even falls in relation to income, giving the tax a regressive feature.A proportional tax takes the same percentage from all taxpayers.A progressive tax takes an increasing percentage as income rises.A regressive tax takes a decreasing percentage as income rises.None of these taxes is both mildly progressive and regressive.Therefore, the tax that is mildly progressive and regressive is the digressive tax.Answer:D. Digressive tax.