Distinguish between:Direct tax and indirect tax

Answer»

Direct tax	Indirect tax
It is imposed directly on the taxpayer and is paid by the taxpayer directly to the government.	It is a tax collected by intermediaries (for example, retailers) from the ultimate taxpayers i.e. the consumers.
The incidence and impact of the tax is on the same person.	The incidence and impact of the tax is on different persons.
For example - Income tax, property tax.	For example - VAT, custom duty.

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