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Question
Study the relationship in the first pair of words and complete the second pair:
Income tax : Direct tax
______ : Indirect tax
Options
Property tax
Entertainment tax
House tax
Road tax
Solution
Income tax : Direct tax
Entertainment tax : Indirect tax
Explanation:
Direct tax is a type of tax that a person or organisation pays directly to the authority that imposed it. An example of a direct tax is the income tax. The government imposes an indirect tax on a taxpayer for goods and services delivered. The government imposes an indirect tax on entertainment.
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