Definition of Indirect tax:
Taxes imposed by the state on consumption, expenditure, benefits or rights, but not on income or property. Examples of indirect taxes include the import tax, special tax on production, sales tax or value added tax (VAT) at some point in the distribution process, as they do not come directly from the income of consumers or workers. . Because they are less clear than income tax (because they are not paid), politicians are tempted to increase them in order to generate more revenue for the government. Also known as consumption tax, it is a regressive measure because it is not based on solvency principle.
How to use Indirect tax in a sentence?
- There may be indirect taxes on the product for which you have to consider the costs you will pay.
- My father hates to accept indirect taxes because he loves money and does not deprive taxpayers of it.
- Some believe that indirect taxes, known as taxes on sin, are the easiest way for the government to raise the money needed to provide the services people need.
Meaning of Indirect tax & Indirect tax Definition