Classification of taxes
Answer Text: Classification of taxes:Tax system can be classified into three:1. Based on impact on taxpayer.-direct taxes e.g PAYE,corporation tax-indirect taxes e.g VAT, sales tax, custom duty2. Based on tax base-income-income tax-selling price –sales tax-export/imports-export and import tax3. Based on tax structure-Progressive tax- rate increases with tax base-Regressive tax- rate falls as the tax base increases-Proportional- rate remains constant