What's the difference between direct and indirect taxation

Direct taxes are paid to the government straight from the individual or group taxpayer. E.g income tax (comes straight from the individuals' income) or corporation tax (comes straight from the firm).

Indirect taxes are taxes on goods and services, which can then be passed onto the consumer by the producer - although this doesn't always happen. E.g VAT.

CM
Answered by Colm M. Economics tutor

16434 Views

See similar Economics GCSE tutors

Related Economics GCSE answers

All answers ▸

Give the definition of an externality and explain why it is a market failure?


Explain why income tax in the UK is an example of progressive taxation.


Explain why the UK have different minimum wage rates for different age groups


What are some of the sources of unemployment?


We're here to help

contact us iconContact ustelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

MyTutor is part of the IXL family of brands:

© 2026 by IXL Learning