direct tax

A direct tax is a tax that individuals or businesses pay directly to the government based on their income or wealth. Examples include income tax and property tax. These taxes are generally paid straight from the taxpayer’s earnings or assets and are based on their financial situation. Because they are paid directly, the government can assess and collect them without relying on intermediaries. Direct taxes are important for funding public services like healthcare, education, and infrastructure, and they often aim to promote fairness by taxing those with higher incomes or larger assets proportionally more.