Direct taxes are paid by individuals or businesses directly to the government, while indirect taxes are levied on goods and services and paid by consumers. It’s crucial for eligible people to comply with the country’s tax laws and pay the applicable taxes. Understanding the distinction between Direct Tax and Indirect Tax is essential for taxpayers.

Taxes serve as a significant revenue source for governments worldwide, collected in various forms such as income tax on salaries, sales tax on restaurant meals, toll fees for driving, or taxes on groceries at stores. As responsible citizens, we have a duty to fulfil our tax obligations and understand the different tax types we encounter. Broadly, taxes are categorised into Direct Taxes and Indirect Taxes. In this blog, Shuraa Tax will help clarify the differences between these two tax types.