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

Related Economics GCSE answers

All answers ▸

What are the characteristics of an oligopoly?


Should skilled workers be paid more than unskilled workers? (8 marks)


Explain why a firm in Perfect Competition earns supernormal profits in the short-run


What is the basic economic problem?