Question 31
EasyOriginal questionWhich of these is a direct tax?
Show the answer and explanation
CorrectNot quiteAnswer B
Correct answer: B
Explanation
A direct tax is paid to the government by the same person who bears it.
Income tax is paid by the person whose income is taxed, so it is direct.
GST, customs and excise are all collected from a seller who passes the cost on to the buyer, which makes them indirect.
Worth noting
Corporation tax is the other large direct tax, and it usually collects more than income tax does.
- Concept
- Direct tax against indirect tax
- Typical timeTypical
- 30 s
- Your timeYours
- —
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