Indirect tax

From Wikipedia, the free encyclopedia
Jump to: navigation, search

An indirect tax is a tax that is paid as part of a product. Many countries tax gasoline or cigarettes, but they do so indirectly. Because of the tax, the product will be more expensive. In turn, the shops will then pay the tax for the number of packets of cigarettes they sold, or for the amount of gasoline. This is opposed to a direct tax, which is directly paid by the consumer.