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_______________ is one of the taxes, where the impact lies on the person for whom it is legally imposed.
Direct tax
Indirect tax
Goods and services tax
Value added tax
- Direct tax:
- This is the correct option.
- It's a tax where the legal impact and the financial burden fall on the same person.
- Examples include income tax and property tax.
- Indirect tax:
- The impact is on the person paying, but the burden is shifted to another.
- Examples are sales tax and excise duty.
- Goods and Services Tax (GST):
- A type of indirect tax.
- Levied on the supply of goods and services.
- Value Added Tax (VAT):
- Another form of indirect tax.
- Charged at each production stage and paid by the end consumer.
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