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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

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).
Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson

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.

Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005
References in periodicals archive ?
In first nine months of the last fiscal year, the FBR had collected Rs68.5 billion or 6.6% of total direct taxes through its own efforts.
To make economy stable the government should collect most of it from the direct taxes. For this the FBR must know the number of filers and in Pakistan most of the people are non-filer.
It is quite ironic that direct taxes in Pakistan are also being levied and collected in an indirect way.
One of the direct taxes that Sindh has apparently failed to mobilise is the tax on agriculture income.
Instead of imposing direct taxes government should broad its tax net to the aristocrat and privileged classes and there is a need to enhance indirect taxes.
Of the ` 14.49 lakh crore budgeted tax revenue target for 2015- 16, ` 7.97 lakh crore was estimated to come from direct taxes and another ` 6.47 lakh crore from indirect taxes ( customs, excise and service tax).
When I was the Finance Minister, I followed a simple principle on the direct taxes side, which was that all incomes must be taxed.
The Article identifies the reasons the Constitution required that direct taxes be apportioned among the states by population.
governments are generally exhorted to increase their revenue collection from direct taxes. Now, in Pakistan the government (or more appropriately, FBR) has found an easy way to fool every one concerned.
They said the share of direct taxes in the revenue generation should be enhanced to give relief to the poor segment of the society.
in ratifying the 1787 Constitution, recommended the following: "That Congress do not lay direct taxes but when the moneys arising from the impost and excise are insufficient for the public exigencies, nor then until Congress shall have first made a requisition upon the States to assess, levy, and pay, their respective proportions of such requisition, agreeably to the census fixed in the said Constitution, in such way and manner as the legislatures of the States shall think best." Statesmen from Massachusetts sought to save their fellow citizens from the pestilence and manipulation of federal tax collectors, and even suggested that this be part of a constitutional amendment.
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.