What's the difference between direct and indirect tax

The tax shall be paid directly to the tax ingredients. The tax shall be paid directly to the person concerned.

• Economic balance in society

Taxes are levied according to a set of slides, where a fixed tax is not calculated, the tax is calculated according to per capita income, if the income is low and the tax is high, which helps to achieve social and economic balance within the State.

• Direct tax contributes to lower inflation

Where the State imposes taxes in the event of inflation within the State and its impact on the economy, it reduces demand for different products and goods, which directly contributes to the control of the inflation rate. Direct tax deficiency despite the aforementioned features that contribute to the balance and growth of the economy, but also contains certain disadvantages and disadvantages, such as:

• The government can be circumvented and evaded.

One of the biggest direct tax disadvantages is the ability of persons to circumvent the State and not to pay tax or pay less tax than is to be paid.

• Investment damage

The imposition of direct taxation on capital gains and financial transactions in general, often caused the flight of investors, which also affected the economy and State revenues.

• It affects per capita income.

Direct tax is collected through the deduction of a fixed amount per year, which is a burden on the individual and directly affects its own income. The advantages of indirect tax also have multiple benefits:

• Equality of individuals

Taxes imposed on goods and products are one of the ways in which all members of society are equal, either the high-income group or the tax-exempt group due to their low income.

• The state cannot be diverted to avoid pushing it.

It is a tax that is payable and cannot be avoided in any way, an added tax that must be paid for the service or the goods it wants to receive. Indirect tax defects along with previous features, however, indirect taxation carries several disadvantages, including:

• Consumer not knowing what tax he pays.
• Paying all members of society for indirect taxation at the same level and rate, which some consider unfair and retrospective
• Indirect tax raises the price of products and goods

The difference between direct tax and indirect tax is that direct taxation is transferred directly from the individual to the Government, while indirect taxation is channelled through a supplier or intermediary between the individual and the Government, so the most important difference is the presence or absence of an intermediary, so the difference between direct tax and indirect taxation is only one way of collection, however, both taxes are supplied.