ICSE Class X Economics 2022 Solved Papers

Question : 31

Total: 33

Give any three points of difference between direct and indirect tax.

Solution:

Direct Tax	Indirect Tax
1. They are directly paid to the Government by the people on whom they are imposed.	They are paid to the Government by one person but their burden is borne by another person.
2. They cannot be shifted i.e., impact and incidence is on the same person.	They can be shifted i.e., impact is on one person and incidence is on an another person.
3. Taxes imposed on production or income are direct taxes.	Taxes imposed on consumption are indirect taxes.

Go to Question:

Prev Question

Next Question