Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Government Budget and Economy

Question:

Direct tax is called direct because it is collected directly from ___________.

Options:

The producer on goods purchased

The sellers on goods sold

The buyers of goods

The income earners

Correct Answer:

The income earners

Explanation:

The correct answer is option (4) : The income earners

The term "direct tax" is used because these taxes are levied directly on individuals or entities and the burden of the tax cannot be shifted to someone else.