Direct taxes are paid by individuals directly from income earned or on the value assets owned to the income tax department.
Types of Direct Taxes
Income Tax – This is a tax on earned income- individuals pay a percentage of their income.
This is a tax on the profits of companies
Capital Gains Tax
This is a tax on the proceeds resulting from the sale of assets, e.g. houses, land etc.
Capital Transfer and Estate Duties
This is a tax on the transfer of property (gifts) and on legacies (death duties)
Other Direct Taxes
These include: stamp duties, motor vehicle duties land taxes, etc.
Indirect taxes are paid to the income tax department through the suppliers of goods and services. These taxes are levied on consumption and therefore are paid by individuals when purchasing commodities.
Value Added Tax (Ad Valorem Tax)
This is the tax levied on goods as each stage of production. This tax generally is known as a General Consumption Tax (G.C.T.).
This tax is placed on specific goods at retail outlets. Theses include gasoline, tobacco, rum etc.
A tax placed on goods manufactured within a country. This tax is paid by the manufacturer of the product.
This is a tax on imports i.e. goods entering the country.