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Citing reason state the advantage of a direct tax over an indirect tax.

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प्रश्न

Citing reason state the advantage of a direct tax over an indirect tax.

Mention three merits of direct taxes over indirect taxes.

Citing reasons state the superiority of A direct tax over an indirect tax. 

संक्षेप में उत्तर
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उत्तर

  1. Direct taxes cost less to collect than indirect taxes. 
  2. Direct taxes are often progressive, which means they can more effectively reduce income and wealth inequities. Whereas, indirect taxes have a regressive pattern. 
  3. Like indirect taxes, direct taxes are unlikely to cause product price increases. 
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