The impact of direct-indirect taxation on consumer

One of the most important resources of revenue for every Government is tax which is fulfilling its commitments towards society. Taxes are classified as direct taxes and indirect taxes. Direct and indirect taxation have different impacts on the consumer, they have advantages and disadvantages in the same time. Direct taxation is equitable, certain and adverse effects can be avoided, in the same time it is unpopular, inconvenience and it is possible to evade by the tax payers. However, indirect taxation is the solution for the problem of externality and it gives the government more control over its use of fiscal policy because indirect taxes can be changed between budgets without parliamentary approval. In contrast, direct taxes can only be changed in the annual budget.