Tax on is an indirect tax?

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1234472

2026-03-26 21:25

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Tax on goods and services, such as Value Added Tax (VAT) or sales tax, is considered an indirect tax because it is collected by intermediaries (like retailers) from the final consumers. The tax is included in the price of the goods or services, meaning that consumers pay it indirectly rather than directly to the government. Unlike direct taxes, which are levied on individual income or profits, indirect taxes can affect consumer behavior and spending patterns.

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