What is and example of indirect tax?

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2026-05-11 22:10

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An example of an indirect tax is a sales tax, which is levied on the sale of goods and services. This tax is collected by retailers at the point of sale and passed on to the government, rather than being paid directly by the consumer to the government. Other examples include value-added tax (VAT) and excise duties on specific products like alcohol or tobacco. Indirect taxes ultimately affect the final price paid by consumers.

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