Direct Taxation

Why it matters

• Serves as a primary tool for wealth redistribution and reducing economic inequality within the country.
• Acts as a stable and predictable source of revenue for the government to fund public services and infrastructure.
• Promotes fiscal accountability by creating a direct link between the taxpayer and the state's administrative functions.

How it is asked

Focus on the progressive nature of direct taxes, the distinction between direct and indirect tax structures, and the role of the tax-to-GDP ratio in assessing fiscal health.