Taxes can be classified into various categories based on different criteria. Common classifications of taxes include progressive, proportional, and regressive taxes based on their impact on different income levels. Progressive taxes impose a higher tax rate on individuals with higher incomes, aiming to distribute the tax burden more equitably. Proportional taxes, also known as flat taxes, apply a constant tax rate regardless of income level. Regressive taxes, on the other hand, impose a higher tax burden on individuals with lower incomes, as the tax rate decreases as income increases. Other classifications of taxes include direct and indirect taxes. Direct taxes are levied directly on individuals or entities, such as income taxes or corporate taxes. Indirect taxes, such as sales taxes or value-added taxes (VAT), are imposed on goods and services and are ultimately borne by consumers. Understanding the classification of taxes helps businesses and individuals assess the impact of taxation, plan their financial activities, and understand the fairness and efficiency implications of different tax structures.