Indirect Taxes
Indirect taxes are taxes that are not directly paid by individuals to the government. Instead, they are included in the price of goods and services. When consumers purchase items, they pay these taxes indirectly, as businesses collect them and pass them on to the government. Common examples of indirect taxes include sales tax and value-added tax (VAT).
These taxes are often seen as a way for governments to generate revenue without directly taxing income. Indirect taxes can affect consumer behavior, as higher taxes may lead to increased prices, influencing purchasing decisions. They are an essential part of a country's tax system, helping fund public services and infrastructure.