Explain five demerits of direct taxation

      

Explain five demerits of direct taxation

  

Answers


John
Encourage avoidance and evasion; it can be easily evaded by tax payer by either falsifying information about their income or just ignoring payment

Deterrent to saving as it reduces people, ability to save due to less disposable income left with them

Deterrent to investment; heavy taxation on profit may deter entrepreneurs from investigating in high risk but profitable

May inconvenience the tax payer especially he/she has to comply with complicated formalities relating to source of income as well as expenses incurred while generating it
johnmulu answered the question on October 23, 2017 at 06:02


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