Indirect Tax
Indirect tax is a type of tax levied on goods and services rather than on income or profits. Unlike direct taxes, which are paid directly to the government by the taxpayer, indirect taxes are collected by intermediaries (like businesses) who then pass them on to the government. Common examples of indirect taxes include:
- Goods and Services Tax (GST): A unified tax on the supply of goods and services.
- Value Added Tax (VAT): Tax added at each stage of production or distribution.
- Excise Duties: Taxes on specific goods, such as alcohol, tobacco, and fuel.
- Customs Duties: Taxes on imported and exported goods.
These taxes impact the final price of products and services, influencing consumer behavior and business pricing strategies.
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