Why indirect tax are regressive in nature
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Indirect taxes are those which are levied on all goods and services. The incidence and impact of this tax falls on different persons. It is considered as regressive in nature as it is applied uniformly to all situations regardless of the tax payer.
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Regressive Nature of Indirect Taxes
Indirect taxes are commonly used and imposed by the government in order to generate revenue. ... But many consider them to be regressive taxes as they can bear a heavy burden on people with lower incomes who end up paying the same amount of tax as those who make a higher income.
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