Question

Mention five differences between a direct tax and an indirect tax.

Answer 1

Direct Taxes	Indirect Taxes
The tax burden cannot be shifted to any other individual or firm by the taxpayer.	The tax burden can be shifted by the taxpayer.
It is progressive because the tax rate increases with an increase in income slabs.	It is regressive because the common people bear this tax burden.
The impact and incidence of tax fall on the same person.	The producer bears the impact and incidence of tax on the consumer.