LS11 - Taxes & Subsidies Flashcards
1
Q
Direct Tax
A
A tax applied directly on an individual/organisation e.g. income/corporation tax.
2
Q
Indirect Tax
A
A tax applied to a good/service e.g. Fuel Duty.
3
Q
Ad Valorem Tax
A
Where the tax charged increases in proportion to the value of the good/service e.g. VAT.
4
Q
Subsidy
A
A grant given by the government to encourage the production/consumption of a particular good/service.
5
Q
The Incidence Of Tax
A
The burden of tax and who has to pay it - this is usually shared out between the producer and consumer.
