Single correct option
Which of the following is a direct tax?
- A. Goods and services tax
- B. Customs duty
- C. Income tax
- D. Excise duty
Show answer and solution
Answer: (C) Income tax
A direct tax is levied on a person's income or wealth and the burden cannot be shifted, as with income tax and corporation tax. GST, customs duty and excise duty are indirect taxes because the tax is collected from the seller or importer and passed on to the consumer.
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