ABSTRACT
Revenue to meet the expenditure is raised by means of taxes, which are divided into two groups, termed direct and indirect taxes. The term indirect taxation is, generally used to; designate those taxes which are collected on the sea board or on the frontiers of a territory and the term direct taxation to describe all other taxes. Under a system of indirect taxation, even in European countries, few individuals have any clear idea as to how much they pay annually into the State coffers. In the case of direct taxation, even where the taxation is very small, say, only sixpence per head per annum, each individual native is fully alive to the fact that the Government is divesting him of property. The principal reason why direct taxation is all important to the proper administration of natives is that it is only through the channel that the administrative, that is, political, officers can be brought into close touch with the natives.
