indirect taxes
Indirect taxes are taxes that are not directly paid by individuals or businesses to the government. Instead, these taxes are included in the price of goods and services. When consumers purchase items, they pay the tax as part of the total cost, which the seller then passes on to the government. Common examples of indirect taxes include sales tax, value-added tax (VAT), and excise tax.
These taxes are often used to generate revenue for public services and infrastructure. Since they are included in the price, consumers may not always be aware of the exact amount they are paying in taxes. Indirect taxes can influence consumer behavior and spending patterns, as higher taxes may lead to increased prices.