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

17257 Views

See similar Economics GCSE tutors

Related Economics GCSE answers

All answers ▸

What is a 'trade off'?


What is the balance of payments?


Are living standards always lower in developing countries than developed countries?


Explain one negative externality that could occur due to the building of a new airport.


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