Definition of a proportional tax with an example
Answer Text: Proportional TaxThis is a type of tax where the rate of tax remains the same irrespective of the level of income or value of property to be taxed e.g. if the rate is 20% then a person who earns ksh.5000 will pay 20/100X5000=ksh.1000 Ksh.10, 000 will pay 20/100X10,000=ksh.2000 e.t.cExample: corporation tax where companies are expected to pay a fixed proportion of their profits as tax.