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

14952 Views

See similar Economics GCSE tutors

Related Economics GCSE answers

All answers ▸

Explain why the demand for food is relatively price inelastic


How can a tax be represented in a simple demand and supply diagram?


What is demand pull inflation?


Analyse Indifference Curves and the effect on lower prices. (20)


We're here to help

contact us iconContact usWhatsapp logoMessage us on Whatsapptelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

© MyTutorWeb Ltd 2013–2025

Terms & Conditions|Privacy Policy
Cookie Preferences