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Questions and Answers
Which one of the following is an example of a direct tax?
Which one of the following is an example of a direct tax?
Which one of the following is an example of an indirect tax?
Which one of the following is an example of an indirect tax?
Who bears the burden of a direct tax?
Who bears the burden of a direct tax?
Who bears the burden of an indirect tax?
Who bears the burden of an indirect tax?
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Which one of the following is an example of an indirect tax?
Which one of the following is an example of an indirect tax?
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Study Notes
Direct and Indirect Taxes
- Income tax is an example of a direct tax, where the individual or organization paying the tax bears the burden.
- Sales tax, value-added tax (VAT), and excise duties are examples of indirect taxes, where the burden is shifted to the consumer.
- The burden of a direct tax is borne by the individual or organization paying the tax.
- The burden of an indirect tax is shifted to the consumer, who pays a higher price for the goods or services.
Examples of Taxes
- Income tax is a direct tax.
- Sales tax, VAT, and excise duties are indirect taxes.
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Description
Test your knowledge on direct and indirect taxes with this quiz. Learn about the difference between direct and indirect taxes and understand which taxes fall under each category.
