The correct answer is: B) Direct tax
A direct tax is a tax that is levied directly on the person or entity that is responsible for the tax. This means that the tax is not passed on to another person or entity. Direct taxes are typically levied on income, property, and wealth.
An indirect tax is a tax that is levied on goods and services that are purchased by consumers. The tax is then passed on to the consumer in the form of a higher price for the goods or services. Indirect taxes are typically levied on sales, value-added, and excise taxes.
Excise duty is a type of indirect tax that is levied on specific goods and services, such as alcohol, tobacco, and gasoline. Customs duty is a type of indirect tax that is levied on goods that are imported into a country.
Here is a table that summarizes the key differences between direct taxes and indirect taxes:
| Characteristic | Direct tax | Indirect tax |
| — | — | — |
| Levied on | Person or entity that is responsible for the tax | Consumer |
| Passed on | No | Yes |
| Examples | Income tax, property tax, wealth tax | Sales tax, value-added tax, excise tax |
I hope this helps! Let me know if you have any other questions.