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Indirect tax is tax collected by intermediaries for eg. Direct tax is imposed directly on the taxpayer and is paid by the taxpayer directly to the government. Difference Between Direct And Indirect Taxes Introduction To Indire Economical and lower cost mechanism. . Indirect taxes being wrapped up with retail prices are more efficient than direct taxes and more difficult to evade. Explain the difference between a direct tax and an indirect tax. A Indirect tax is imposed on one person but paid by the other. Examples of indirect taxes include liquor fuel. Individuals firms companies pay direct taxes. C Impact and incidence are on the same person ie the tax payer is also tax bearer. It covers an entityindividual. Unlike a direct tax indirect taxes do. The tax is collected by the supplier and paid to the government. These taxes cannot be shifted to any other person or group. A A direct tax is p...