Indirect Tax
Indirect tax is a type of tax that is not directly paid by the individual to the government. Instead, it is collected by an intermediary, such as a retailer or service provider, who then passes it on to the government. Common examples of indirect taxes include sales tax and value-added tax (VAT), which are added to the price of goods and services.
These taxes are typically included in the final price that consumers pay, making them less visible than direct taxes like income tax. Indirect taxes can influence consumer behavior, as higher taxes may lead to increased prices, potentially reducing demand for certain products or services.