Indirect tax example:

**The reasoning** Taxes fall into two camps: **direct** and **indirect**. **Direct taxes** are paid straight from your pocket to the government. They're based on what you *earn* or *own* — like income tax (on your salary), corporation tax (on company profits), or capital gains tax (on profit from selling assets). The government knows exactly who paid. **Indirect taxes** are sneaky — you pay them *through* someone else, usually when buying goods or services. **VAT (Value Added Tax)** is the classic example. When you buy ₦1,000 airtime and ₦75 is VAT, the vendor collects it from you and passes it to government. You're the real payer, but indirectly. **Why the wrong options tempt you** Income tax, corporation tax, and capital gains are all **direct** because they target specific people/entities based on their income or profits. Students mix them up because all taxes feel like they come "from" you — but the key is *how* the government collects them. **Quick takeaway** If the tax hits your income or wealth directly, it's direct; if it's hidden in the price you pay for stuff, it's indirect.