Answer:
Here are five merits of direct tax:
1. Fairness: Direct tax is considered to be a fairer form of taxation because it is based on the taxpayer's ability to pay. People who earn more pay more, while those who earn less pay less.
2. Simplicity: Direct taxes are relatively simple to understand and administer. They are usually based on a percentage of income or property value, which makes them easy to calculate.
3. Certainty: Direct taxes provide a certain source of revenue for the government. Since they are based on a fixed percentage of income or property value, the government can predict how much revenue it will collect each year.
4. Progressiveness: Direct taxes are progressive in nature, which means that the tax rate increases as the income or property value increases. This ensures that the burden of taxation is shared more equitably among taxpayers.
5. Economic Stability: Direct taxes can help stabilize the economy by providing a stable source of revenue for the government. This revenue can be used to fund important government programs and services, which can help stimulate economic growth and stability.