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PFN712S-PUBLIC FINANCE-2ND OPP-JULY 2022 |
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nAm I BIA UnlVERSITY
OF SCIEnCE Ano TECHnOLOGY
FACULTY OF MANAGEMENT SCIENCES
DEPARTMENT OF ACCOUNTING,ECONOMICSAND FINANCE
QUALIFICATIONB:ACHELOROF ECONOMICS
QUALIFICATIOCNODE:07BECO
LEVEL: 7
COURSECODE:PFN712S
COURSENAME:PUBLIC FINANCE
SESSIONJ: UNE 2022
DURATION:3 HOURS
PAPER:THEORY
MARKS:100
SECONDOPPORTUNITEYXAMNATION_PAPER
EXAMINER(S) MR. MALLY LIKUKELA
MODERATOR: MR. M MBAHA
INSTRUCTIONS
1. This paper consist of section A,B,Cand D
2. Answer ALL questions
3. Number your answers in accordance with the question paper.
4. Start each section answer on a new page
5. Write clearly and leqibly
PERMISSIBLEMATERIALS
1. Pen/pencil/eraser
2. Ruler
3. Calculator
THISEXAMNATIONMEMORANDACONSISTSOF3 PAGES(Including this front page)
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,SECTIONA
QUESTION1
Define and explain the scope for Public Finance.
QUESTION2
Describe the five solutions to the problem of externalities.
20 MARKS
[10MARKS]
[10MARKS]
SECTION8
QUESTION1
1. List five sources of government revenue in Namibia
ii. List the main sectors in which the Namibian budget is distributed
30 MARKS
[10MARKS]
[5]
[5]
QUESTION2
Describe the main disadvantages of Value Added Tax (VAT).
[10MARKS]
QUESTION3
i. Define tax incidence
ii. Explain the four important principles of tax incidence:
[10MARKS]
[2]
[8]
SECTIONC
QUESTION1
With the help of a diagram discuss the deadweight loss of taxation
20 MARKS
[10MARKS]
QUESTION2
[10MARKS]
Discuss the main rationale for tax reform in an economy's tax system and relate to
Namibian situation.
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SECTIOND
QUESTION1
Income Tax In 2013
Taxable amount(N$)
0-50 000
. 50 001- 100 000
100 001 - 300 000
300 001- 500 000
500 001- 800 000
aoo001- 1 s·oooo
Above1 500 001
Source:PWC
Tax on loweramount(N$)
0
0
9000
59000
115 000
205 000
429 000
30 MARKS
[30 MARKS]
% tax on excessover loweramount
I
0%
18%
25%
28%
30%
32%
''
37%
i
Namibian Income Tax is taxed based on the table above.
a. Calculate the total amount of tax paid by an individual earning NS750 001 per annum.
[5]
b. Define effective rate and marginal rate.
[5]
c. Calculate the effective rate and marginal rate
[5]
d. Elaborate upon the following terms:
i. Statutory incidence of taxes
[5]
ii. Economic incidence of taxes
[5]
iii. Budget calendar
[5]
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