Tax Classification

Tax can be boradly classified into two categories:

• Direct tax
• Indirect Tax  

1.Direct Tax : It is the tax paid by a person on whom it is legally imposed. Thus the person paying and bearing the tax is the same. It is the tax on income and property
Examples

Income Tax Vehicle Tax Expenditure Tax Death Tax Gift Tax

Property Tax Interest Tax Death Tax Gift Tax

2.Indirect Tax: It is the tax imposed on a person but partly or wholly paid by the another. Thus person paying and bearing the tax is different. It is the tax on consumption and expenditures:

• Value Added Tax (VAT)
• Entertainment Tax
• Excise Duty

• Sales Tax 
• Hotel Tax
• Import duty
• Export duty