1. Allocation Effect ↓
The allocative effects of direct taxes are superior to those of indirect taxes. When a particular amount is raised through a direct tax like income tax, it would imply a lesser burden than the same amount raised through an indirect tax like excise duty.An indirect tax involves excessive burden as it distorts the consumer's preference regarding goods due to price changes.
Wednesday, 29 December 2010
Difference Between Direct and Indirect Taxes - Comparison
Posted on 23:37 by Unknown
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