taxation

Question 1

tax

Answer 1

a legally compulsory payment imposed by the government on income and profit of people and companies without reference to any benefit

Question 2

direct tax

Answer 2

tax taken directly from the tax payer

e.g income tax, corporate tax

Question 3

advantages of direct tax

Answer 3

1. source of revenue for the government
2. progressive tax which brings upon a more equal distribution of income
3. reduces inflation