Why is direct tax is better than indirect tax?

Answer 1

Direct tax is often considered better than indirect tax because it is based on the taxpayer's ability to pay, leading to a more equitable distribution of the tax burden. It promotes transparency and accountability, as taxpayers are more aware of what they owe. Additionally, direct taxes can generate stable revenue for governments, as they are less susceptible to economic fluctuations compared to indirect taxes, which can vary with consumer spending.