Direct taxes are levied on income or profits, not shiftable to others

Steps:

• Recall direct taxes are imposed on individuals or entities' income/profits and borne by them, unlike indirect taxes on goods/services that are passed on.
• Examine option A: corporation tax targets company profits directly.
• Examine options B-D: these involve taxes on goods or transactions, which are indirect.
• Confirm A as the only direct tax based on economic incidence.

Why A is correct:

• Corporation tax is a direct tax under tax law definitions, as it is levied on companies' profits and cannot be shifted to others.

Why the others are wrong:

• B: Import duties are indirect taxes on goods, passed to consumers via higher prices.
• C: Specific tax on cigarettes is an excise duty, an indirect tax on consumption.
• D: Stamp duty is an indirect transaction tax, borne ultimately by the buyer.

Final answer: A