direct tax

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Direct Tax

A tax that cannot be shifted to another person or entity. For example, taxes on income or assets are direct taxes, as the person or organization on whom they are levied must pay them directly. Direct taxes differ from indirect taxes, such as sales tax, which is levied on a seller but is paid by buyers. There is disagreement as to whether a corporate tax is a direct tax or indirect tax.

direct tax

A tax paid by the individual or organization on which it is levied. For example, the personal income tax is levied on individuals, who end up bearing the entire burden of the tax. A direct tax cannot be shifted from the entity on which it is levied. Compare indirect tax.

direct tax

a TAX imposed by the government on the income and wealth of persons and businesses in order to raise revenue, redistribute income and wealth, and as an instrument of FISCAL POLICY in managing the economy. The main forms of direct tax in the UK are INCOME TAX, CORPORATION TAX, NATIONAL INSURANCE CONTRIBUTIONS and INHERITANCE TAX. See BUDGET (GOVERNMENT).

direct tax

a TAX levied by the government on the income and wealth received by individuals (households) and businesses in order to raise revenue and as an instrument of FISCAL POLICY. Examples of a direct tax are INCOME TAX, NATIONAL INSURANCE CONTRIBUTIONS, CORPORATION TAX and WEALTH TAX.

Direct taxes are incurred on income received, unlike indirect taxes, such as value-added taxes, that are incurred when income is spent Direct taxes are progressive, insofar as the amount paid varies according to the income and wealth of the taxpayer. By contrast, INDIRECT TAX is regressive, insofar as the same amount is paid by each tax-paying consumer regardless of his or her income. See TAXATION, PROGRESSIVE TAXATION, REGRESSIVE TAXATION.

References in periodicals archive ?
The Central Board of Direct Taxes ( CBDT) in an order issued on August 7 said it has been brought to the notice of the Board that some officers or staff of the Income Tax department are leaving their stations/ headquarters early on Fridays, during weekend and holidays and joining their duties late on the next working
The officer trainees are presently undergoing a sixteen month induction training at the National Academy of Direct Taxes, Nagpur.
Shah Mahmood Qureshi advocated widening base for direct taxes so as to pull the poor out of poverty crisis.
He said that indirect taxes currently account for more than 60 percent of the total revenues while direct taxes to GDP ratio was merely 2 percent which has been badly affecting consumer spending that is a key driver of economic growth.
He said that direct taxes (income, profit tax and others) are deemed to be progressive while indirect taxes (taxes on expenditure on goods and services such as VAT, levies, import or export duties, excise or stamp duty, motor vehicle tax and many others are regressive.
Bulgaria's finance minister has fervently defended his suggestion for raising direct taxes only by referendum in the future, which opponents have slammed as an impracticable and cowardly idea.
It said if this were the case, the Government should meet the shortfall by raising direct taxes.
A major jump has been witnessed in overall payment of direct taxes during July-June 23, 2010.
Direct taxes usually take the form of an income tax on personal or business earnings.
The Constitution requires that direct taxes be apportioned among the states according to population.