One disadvantages of direct taxes is that they
...One disadvantages of direct taxes is that they
Allocate scarce resources
Are not rigid
Can be progressive
Can be evaded
Correct answer is D
Direct taxes are are taxes such as income tax, which is levied on the income or profits of the person who pays it, rather than on goods or services. One disadvantage of this type of tax is that payers can evade payment.
Tax evasion is an illegal activity in which a person or a corporation deliberately avoids paying a true tax or under-pays taxes. Some income earners or companies may deliberately refuse to pay taxes, or reduce their taxable income/inflow to smaller amounts in other to pay lesser taxes. This has been a serious problem of direct taxes
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