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: Defining Direct Taxes.
Direct taxes are levied and paid directly by the entity on whom they are imposed to the government. Examples include income tax and corporation tax.

Step 2: Evaluating the Choices.
- (A) Income Tax: A direct tax, paid by individuals on their earnings.
- (B) Corporation Tax: A direct tax, paid by companies on their profits.
- (C) Property Tax: A direct tax, imposed on property ownership.
- (D) Customs Duty: An indirect tax, applied to imported or exported goods, not a direct tax.

Step 3: Determining the Answer.
(D) Customs Duty is the correct selection, as it is classified as an indirect tax.