1.

Discuss whether direct or indirect tax seriously affect common people.Hints – Tax burden, rise price, income inequality.

Answer»

In direct tax payer bears the burden himself. So the tax payer known the burden of tax. But indirect tax collected by raising the price of commodities. Tax payer is ignorant of the tax. Evading a tax means giving up the wants. Direct tax is based on the principle of the ability to pay.

But indirect tax will not ensure social justice as it falls upon the rich and to poor alike. The rate of increase in the direct tax j may cause increase in the price of commodities. Thus we can assess that direct tax affects common man more public debt.



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