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

15922 Views

See similar Economics GCSE tutors

Related Economics GCSE answers

All answers ▸

Assess the impact of minimum wage legislation on a developing economy.


What is a Macroeconomic consequence of an increase government spending?


What is the effect of a rise in Interest rate on the level of growth in the economy?


Explain how an increase in interest rates can affect total spending in the UK.


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:

© 2025 by IXL Learning