CIMA Exam CIMAPRA19-F01-1 Topic 6 Question 69 Discussion

Actual exam question for CIMA's CIMAPRA19-F01-1 exam

Question #: 69
Topic #: 6

[All CIMAPRA19-F01-1 Questions]

Why are excise duties an attractive method of raising tax for governments?

Select TWO that apply.

ALow cost of collection compared to other forms of taxation.

BHigh yields from the tax.

CEncourages consumption of products such as alcohol.

DPopular form of tax for the tax payer as it can be reclaimed.

EEnsures that the tax levied on all taxpayers is the same irrespective of their spending habits.

Show Suggested Answer

Suggested Answer: D

by Loren at Apr 19, 2023, 01:43 PM

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Otis

1 months ago

Excise duties, the government's version of a 'sin tax' – because who needs a social life when you can have a tax bill instead?

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Veta

1 months ago

Excise duties? Sounds like the government is trying to squeeze us dry like a lemon. Better start stockpiling our favorite vices before they tax the fun out of everything!

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Celeste

7 days ago

A) Low cost of collection compared to other forms of taxation.

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Reita

1 months ago

Ah, the good old 'one size fits all' approach to taxation. Gotta love how the government keeps things simple, even if it means we all pay the same no matter how much we spend.

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Louann

2 months ago

Wait, you mean I can't reclaim this tax? Well, there goes my hope of getting a refund to fund my alcohol habit.

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Alida

26 days ago

B) High yields from the tax.

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Carry

1 months ago

A) Low cost of collection compared to other forms of taxation.

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Sanda

2 months ago

Encouraging consumption of alcohol? That's one way to keep the masses happy, I suppose. Guess the government is feeling a bit tipsy with this tax plan.

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