What is the difference between a direct tax and an indirect tax

What is the difference between a direct tax and an indirect tax Introduction: The Backbone of Government Revenue Hello, everyone! Taxes are the lifeblood of any government, enabling it to provide essential services and fund public initiatives. Today, we'll explore the two primary tax categories: direct taxes and indirect taxes. While both contribute to the government's coffers, they differ significantly in their nature and impact. Direct Taxes: A Closer Look Direct taxes are levies imposed directly on individuals or entities. They are typically based on the taxpayer's income, wealth, or property. Examples of direct taxes include income tax, property tax, and wealth tax. What sets direct taxes apart is their inherent progressivity. This means that as the taxpayer's income or wealth increases, so does the tax burden. Direct taxes are often seen as a means to achieve income redistribution and social equity. Indirect Taxes: A Different Approach Unlike direct taxes, indirect taxes are not directly imposed on the taxpayer. Instead, they are levied on the sale or consumption of goods and services.