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Direct Tax

   Also found in: Dictionary/thesaurus, Financial, Encyclopedia, Wikipedia 0.01 sec.

A charge levied by the government upon property, which is determined by its financial worth.

A direct tax is usually a property tax or ad valorem tax, as opposed to an indirect tax imposed upon some right or privilege, such as a franchise tax.



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The outcome of the discussion would be used for modifying the proposals contained in the draft direct tax code," the minister said.
The new Direct Tax system would also take into account established and time tested practices which have withstood judicial scrutiny," he said.
As opposed to a direct tax on income, indirect taxes are usually based on value and are associated with consumption.
 
 
 
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