define direct tax or indirect tax
DEFINITION of 'Indirect Tax'. A tax that increases the price of a good so that consumers are actually paying the tax by paying more for the products. An indirect tax is most often thought of as a tax that is shifted from one taxpayer to another, by way of an increase in the price of the good. Fuel, liquor and cigarette taxes are all considered examples of indirect taxes, as many argue that the tax is actually paid by the end consumer, by way of a higher retail price.
Noun. 1. direct tax-a tax paid directly by the person or organization on whom it is levied. revenue enhancement, tax, taxation-charge against a citizen's person or property or activity for the support of government. Translations. n â imposta diretta.