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Answer» Distinction between a direct tax and indirect tax. | Direct taxes | Indirect Taxes | | (1) They are directly paid to the government by the person on whom it is imposed. | (1) They are paid to the government by one person but their burden is borne by another person. | (2) They are a generally progressive rate The rate of tax increases with increase in income. | (2) They are generally regressive. The tax decrease as income increases. | | (3) They cannot be shifted on to others. | (3) They can be shifted on to others. |
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