TAX – Nov 2020 – L1 – SA – Q3 – The Nigerian Tax System

Identify which tax is not collected by the Federal Government.

Question

Which of the following is NOT a tax to be collected by the Federal Government?
A. Value added tax
B. Petroleum profits tax
C. Tertiary education tax
D. Pools betting, lotteries, gaming, and casino taxes
E. Companies income tax

Answer

D. Pools betting, lotteries, gaming, and casino taxes

Explanation:
Pools betting, lotteries, gaming, and casino taxes are not collected by the Federal Government; they are collected by State Governments. The Federal Government is responsible for taxes such as Value Added Tax (VAT), Petroleum Profits Tax (PPT), Tertiary Education Tax, and Companies Income Tax.

Tags: Federal Tax Authority, Nigerian Tax System, Tax Collection
Level: Level 1

Topic: The Nigerian Tax System
Series: NOV 2020

Uploader: Dotse