A tax on what is an indirect tax?

An indirect tax is a type of tax that is not directly paid by the individual or entity that ultimately bears the cost but is instead levied on goods and services. Examples include sales tax, value-added tax (VAT), and excise duties. These taxes are typically included in the price of the product, meaning consumers pay them indirectly when purchasing goods or services. Businesses collect these taxes on behalf of the government, making it less visible to the end consumer.