As an added benefit, because these taxes are collected from all citizens who purchase goods and services and are collected in such a way as to prevent tax avoidance, these types of taxes are easier to collect than others. Under the heading, I’ll go into more detail about each one. Structure Makes It Easier to… Continue reading Why Do Indirect Taxes Benefit the Economy in the Long Run?
Category: Tax
Indirect Tax
When a tax is not paid directly from an individual’s income or earnings, it is known as an indirect tax. The tax is simple and inexpensive to collect because it is made immediately upon the purchase of goods and services. Indirect taxes and their applications, as well as their fairness, have been a topic of… Continue reading Indirect Tax
Direct Tax
In a system in which the taxpayer and the payer are one and the same, direct taxes are levied on an individual or organisation based on their income. The taxpayer is unable to pass along the burden of these taxes to others when paying them. Direct taxes include things like personal income tax, corporate income… Continue reading Direct Tax