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

15594 Views

See similar Economics GCSE tutors

Related Economics GCSE answers

All answers ▸

Explain how exchange rates are determined in a floating exchange market


What is the different between an increase in demand and an extension in demand?


What is a liquidity trap?


Why should the government consider the price elasticity of demand when imposing tax on goods?


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:

© 2025 by IXL Learning