- 1 Marks
Question
The minimum tax payable by a company engaged in air or sea transport business shall not be less than……………… of the full sum receivable in respect of carriage of passengers, mails, livestock, or goods shipped or loaded into an aircraft in Nigeria.
A. 20%
B. 10%
C. 5%
D. 2%
E. 1%
Answer
Answer: D
Explanation: The correct answer is D. Companies engaged in air or sea transport are required to pay a minimum tax rate of 2% on the full sums receivable for the transportation of passengers, goods, and services loaded in Nigeria. This ensures that even in cases of low profit, there is still a baseline tax contribution.
- Reasoning: Minimum tax rates ensure that companies in the transportation sector contribute to national revenue regardless of their income or profits, particularly when they are involved in high-value activities such as air or sea transport.
- Tags: Air Transport, Minimum Tax, Sea Transport, Tax Rates
- Level: Level 1
- Topic: Tax Administration and Enforcement
- Series: MAY 2021
- Uploader: Kwame Aikins