Question

Which of the following is NOT a Direct Tax?

• A. Income Tax
• B. Corporation Tax
• C. Property Tax
• D. Customs Duty

Hint:

Direct taxes are paid directly to the government by the taxpayer, while indirect taxes are paid on goods and services.

Answer 1

The Correct Option is D

Step 1: Understanding Direct Taxes.
Direct taxes are those taxes that are paid directly to the government by the taxpayer, such as income tax and corporation tax.

Step 2: Analyzing the options.
- (A) Income Tax: This is a direct tax, as it is paid directly by individuals based on their income.
- (B) Corporation Tax: This is a direct tax, paid by companies on their profits.
- (C) Property Tax: This is also a direct tax, levied on property ownership.
- (D) Customs Duty: This is an indirect tax, not a direct tax, as it is paid on goods imported or exported.

Step 3: Conclusion.
The correct answer is (D) Customs Duty, as it is an indirect tax.