Direct Taxes

Direct taxes are taxes that individuals and businesses pay directly to the government based on their income or profits. Common examples include income tax, which individuals pay on their earnings, and corporate tax, which businesses pay on their profits. Unlike indirect taxes, such as sales tax, which are included in the price of goods and services, direct taxes are assessed based on the taxpayer's financial situation. They play a crucial role in government revenue and are often used to fund public services such as education, healthcare, and infrastructure.