What are direct taxes?
They are taxes on the income of individuals or workers and firms, and in their property. Such income would include wages, salaries, profits, rent and interest. The burden of direct taxes falls directly on the payers.
Example includes: Personal income tax: this is a tax levied on the income of an individual, usually during a period if one year only. In some countries or areas, low income earners are exempted from the type of tax.
In assessing personal income tax, the tax payer can claim certain allowances against tax. These include personal allowances, wife's and children's allowances, life assurance premium, provident fund schemes etc. The remaining part of income which remaining part of income after deduction of tac is called disposable income.
Personal income tax is usually progressive. The rate of tax increases as income increases
In most countries and even in some organization and companies., personal income tax yield little revenue to the government. . one reason is that many people are engaged to assess their incomes accurately, while most people Income's are therefore not taxed.
Again, the income of the relatively few number of salary or wage earners is generally low, therefore, the amount got as tax is low.
They are taxes on the income of individuals or workers and firms, and in their property. Such income would include wages, salaries, profits, rent and interest. The burden of direct taxes falls directly on the payers.
Example includes: Personal income tax: this is a tax levied on the income of an individual, usually during a period if one year only. In some countries or areas, low income earners are exempted from the type of tax.
In assessing personal income tax, the tax payer can claim certain allowances against tax. These include personal allowances, wife's and children's allowances, life assurance premium, provident fund schemes etc. The remaining part of income which remaining part of income after deduction of tac is called disposable income.
Personal income tax is usually progressive. The rate of tax increases as income increases
In most countries and even in some organization and companies., personal income tax yield little revenue to the government. . one reason is that many people are engaged to assess their incomes accurately, while most people Income's are therefore not taxed.
Again, the income of the relatively few number of salary or wage earners is generally low, therefore, the amount got as tax is low.
