Question

Indirect taxes meaning, definition and features of indirect tax

Answer 1

An indirect tax is a tax that is paid to the government by one entity in the supply chain, but it is passed on to the consumer as part of the price of a good or service. The consumer is ultimately paying the tax by paying more for the product. An indirect tax is shifted from one taxpayer to another.

It has the effect of raising the price of the products and services on which they are imposed.