Understanding the Social Impact of Taxes in Brazil: A Comparison of Direct and Indirect Taxes

Abstract

Taxes have always been present in humanity, since ancient civilizations, when it was necessary to measure in a rudimentary way what each individual fished and hunted, in order to have control of their livestock. Many ancient rulers began to charge their subjects for grains, animals, food and labor, as a form of taxes. In this context, accounting plays a fundamental role in the social environment. It is intended to record, analyze, interpret and plan tax obligations, helping to ensure compliance with current tax laws and accounting standards. It should be noted that tax laws in Brazil are quite comprehensive and complex. The objective of this study was to understand the difference between direct and indirect taxes, and what their impacts are on the Brazilian economy and society. This study addresses the fundamental concepts of the tax system and what direct and indirect taxes are. The results demonstrated that effective and efficient tax management is important for a good distribution of resources and services to society, resulting in an improvement in the country's development.