Lesson Note on Business Taxes: Company Income Tax, Import Duties and Excise Duties for SSS 2

Class: Senior Secondary School 2 (SS2 / SSS2)
Term: 3rd Term
Week: 8
Age: 16 years
Duration: 45 minutes
Subject: Store Management
Curriculum Theme: Government Revenue and Business Operations
Previous Lesson: Tax Systems: Progressive, Proportional and Regressive Taxes.
Topic: Taxation
Subject Matter: Meaning of taxation, types of business taxes (company income tax meaning and uses, import duties meaning and uses, excise duties meaning and uses).

Specific Objectives

By the end of the lesson, pupils should be able to:

Cognitive Domain:

• Define taxation.
• Identify different types of business taxes.
• Explain the meaning and uses of company income tax, import duties, and excise duties.

Affective Domain:

• Appreciate the importance of taxation to national development.
• Recognize the role of taxes in funding public services.

Psychomotor Domain:

• Prepare a simple list of business taxes and their uses.
• Distinguish between different types of business taxes.

Social Domain:

• Discuss the impact of taxation on businesses and the economy.
• Participate in discussions about government revenue.

Reference Materials

The following resources were used in planning this lesson:

• Senior Secondary Schools Education Curriculum
• State Unified Scheme of Work
• Essential Store Management for Senior Secondary Schools, Book 2

Instructional Materials

The teacher will teach this lesson with the aid of:

• Whiteboard and markers
• Cardboard paper showing types of taxes
• Textbooks on Store Management

Rationale for the Lesson

This lesson helps pupils understand how governments generate revenue through taxation, which is essential for funding public services. It also enables them to identify various business taxes, preparing them for future roles in business and understanding their civic responsibilities.

Prerequisite/Previous Knowledge

Pupils are expected to have basic knowledge of government functions and commerce.

Lesson Content/Board Summary

Taxation

Meaning of Taxation

Taxation is the process by which a government collects money from its citizens and businesses to fund public expenditures. This money is used to provide public services such as roads, schools, hospitals, security, and other infrastructure.

Types of Business Taxes

Businesses are subject to various taxes that contribute to government revenue. The following are common types of business taxes:

• Company Income Tax (CIT)
• Import Duties
• Excise Duties

Company Income Tax (CIT)

Meaning: Company Income Tax is a tax levied on the profits of registered companies operating in a country. It is a direct tax paid by corporations based on their net income.

Uses:

• It is a major source of revenue for the government.
• It helps fund public services and infrastructure development.
• It can be used by the government to influence economic activity through tax incentives or disincentives.

Import Duties

Meaning: Import duties, also known as customs duties or tariffs, are taxes imposed on goods brought into a country from another country. These taxes are collected at the point of entry by customs authorities.

Uses:

• To generate revenue for the government.
• To protect domestic industries from foreign competition by making imported goods more expensive.
• To regulate the volume and type of goods imported into a country.

Excise Duties

Meaning: Excise duties are taxes imposed on certain goods produced and sold within a country. These taxes are often applied to specific goods like tobacco, alcohol, petroleum products, and luxury items.

Uses:

• To generate revenue for the government.
• To discourage the consumption of certain goods considered harmful or non-essential (e.g., tobacco, alcohol).
• To recover the social costs associated with the consumption of certain products.

Teaching Methods/Instructional Techniques

Discussion, Lecture, Demonstration, Question and Answer, Visual Aids

Instructional Procedures

Step 1: Introduction

Time: 5 minutes
Teaching Skill: Set Induction
Teacher’s Activity: The teacher greets the pupils and asks them what they understand by the term ‘government revenue’ and where the government gets its money from.
Pupils’ Activity: Pupils respond by mentioning sources like oil, taxes, and other levies.
Learning Point: Pupils recall prior knowledge related to government income.

Step 2: Meaning of Taxation

Time: 7 minutes
Teaching Skill: Explanation
Teacher’s Activity: The teacher defines taxation as the collection of money by the government from individuals and businesses to fund public services, writing the definition on the board.
Pupils’ Activity: Pupils listen attentively and copy the definition into their notebooks.
Learning Point: Pupils understand the basic concept of taxation.

Step 3: Introduction to Types of Business Taxes

Time: 7 minutes
Teaching Skill: Listing/Identification
Teacher’s Activity: The teacher introduces the main types of business taxes to be discussed, using the cardboard paper to display them: Company Income Tax, Import Duties, and Excise Duties.
Pupils’ Activity: Pupils identify and list the types of business taxes shown.
Learning Point: Pupils become familiar with the categories of business taxes.

Step 4: Company Income Tax (CIT)

Time: 7 minutes
Teaching Skill: Elaboration/Illustration
Teacher’s Activity: The teacher explains the meaning of Company Income Tax and discusses its uses, providing simple examples of companies that pay this tax.
Pupils’ Activity: Pupils listen, ask questions for clarification, and take notes.
Learning Point: Pupils understand Company Income Tax and its purpose.

Step 5: Import Duties

Time: 7 minutes
Teaching Skill: Explanation
Teacher’s Activity: The teacher explains what import duties are, how they are collected, and their various uses, giving examples of imported goods subject to these duties.
Pupils’ Activity: Pupils pay attention, contribute to the discussion, and record the key points.
Learning Point: Pupils grasp the concept of import duties and their functions.

Step 6: Excise Duties

Time: 7 minutes
Teaching Skill: Explanation
Teacher’s Activity: The teacher explains the meaning of excise duties and their uses, providing examples of locally produced goods on which these taxes are levied.
Pupils’ Activity: Pupils listen, participate in discussions, and write down the information.
Learning Point: Pupils comprehend excise duties and their applications.

Step 7: Evaluation/Review

Time: 5 minutes

Teaching Skill: Questioning/Assessment

Teacher’s Activity: The teacher evaluates the learning by asking the following questions:

1. Define taxation.
2. Mention three types of business taxes.
3. Explain the meaning of Company Income Tax.
4. State two uses of import duties.

Pupils’ Activity: Pupils answer orally and in writing.

Learning Point: Pupils demonstrate understanding of the lesson.

Step 8: Conclusion

Time: 2 minutes
Teaching Skill: Summarization
Teacher’s Activity: The teacher summarizes the main points of the lesson by quickly reiterating the meaning of taxation and the types of business taxes discussed. The teacher then assigns homework.
Pupils’ Activity: Pupils listen to the summary and copy the homework.
Learning Point: Pupils reinforce their understanding of the topic and prepare for further study.

Lesson Keywords

• Taxation – The process of collecting money from people and businesses by the government.
• Company Income Tax – A tax on the profits of registered companies.
• Import Duties – Taxes on goods brought into a country from abroad.
• Excise Duties – Taxes on specific goods produced and sold within a country.
• Revenue – Income, especially when of a company or organization and of a substantial nature.

Differentiation

For pupils who grasp concepts quickly, the teacher can challenge them to research other types of taxes or the impact of tax evasion. For pupils needing extra support, the teacher will provide simplified definitions and more guided examples, and encourage peer tutoring.

Note for teachers using this lesson plan

Teachers should ensure to use real-life examples of companies and products that are subject to these taxes to make the lesson more relatable. Encourage pupils to discuss current news related to taxation in Nigeria to foster critical thinking.