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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.

Colm M. GCSE English Literature tutor, GCSE Economics tutor, GCSE His...

6 months ago

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