What is meant by direct taxes?, Direct taxes are taxes imposed/levied on the income earned by individuals and firms., Some examples of direct taxes are:, Income tax; Corporation tax; Capital gains tax,; Inheritance tax and Social insurance taxes, What is meant by indirect taxes?, Indirect taxes are taxes levied on spending., Some examples of indirect taxes are:, Sales tax (or Value-added tax, VAT); Duties; Customs duties; Stamp duties; Council tax; Business rate.

Direct Taxes vs. Indirect Taxes

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