classification of taxestaxes can be classified on

Question

CLASSIFICATION OF TAXES

Taxes can be classified on the basis of:

a.     Impact of the taxes

It means on whom the tax is imposed.   On the other hand, incidence of the tax refers to who had to bear the burden of the tax.  In this case the taxes may be:

• Direct or
• Indirect

b.     Rates of tax

The rate of tax is the percentage of the tax base to be taken in each situation.  In this case the taxes may be:

• progressive or
• proportional or
• regressive or
• digestive