In this article we will discuss the merits and demerits of direct and indirect taxes on an economy. Taxes may be classified as direct and indirect. Direct taxes are levied on a person's or a firm's income or wealth and indirect taxes on spending on goods and services. Thus, direct taxes are paid directly by the person or firm on [...]
In this article we will discuss about the effects of excess burden of indirect taxes, explained with the help of suitable diagrams. While a sales tax is imposed on the sale of a product, an excise duty may be imposed on either on sale or the manufacture of a product. However, as far economic effects are concerned, they are the [...]
Get the answer of: What should be the Objectives of Tax Policy in Developing Countries? Taxation is the compulsory means by which government finances its activities and expenditures. A distinction is often made between direct taxes and indirect taxes. Direct taxes are assessed upon the tax-paying capacities of assesses such as their income or wealth. Indirect taxes are imposed upon [...]