Merits or advantages of direct taxes
Answer Text: Merits/advantages of direct taxesi. Economical in collection; most of direct taxes are collect at source and the cost of collecting them is fairly low.ii. Equitable /equity; they facilitate fair distribution in tax contribution as people pay according to the size of their income.iii. Simplicity /simple to understand; they are easyand simple to understand by both the tax payer and the collector.iv. Brings redistribution of wealth; direct taxes are progressive in nature hence the wealthier members of the society are taxed more than the poorer members of the society.v. No leakages; loss of collected revenue is minimized as the tax is paid directly to the taxauthorities and not through middle men.vi. Elastic/flexible; the tax is flexible in that it can be expanded to cover as many areas as desirable.
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