Question

Study the relationship in the first pair of words and complete the second pair:

Income tax : Direct tax

______ : Indirect tax

Options

• Property tax

• Entertainment tax

• House tax

• Road tax

Answer 1

Income tax : Direct tax

Entertainment tax : Indirect tax

Explanation:

Direct tax is a type of tax that a person or organisation pays directly to the authority that imposed it. An example of a direct tax is the income tax. The government imposes an indirect tax on a taxpayer for goods and services delivered. The government imposes an indirect tax on entertainment.