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What Do You Mean by an Indirect Tax? - Economics

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Short Note

What do you mean by an indirect tax?

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Solution

Indirect taxes are those taxes in which the burden of tax shifts from the payer to the bearer. For example, in case of sale tax, the seller is liable to pay the tax, however; the burden of bearing the tax falls on the customer. The seller collects the tax from the customer and pays it to the government.

Concept: Direct and Indirect Tax
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