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Which of the following is not an indirect tax? - Economics

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Question

Which of the following is not an indirect tax?

Options

  • GST

  • Excise duty

  • Import duty

  • Gift tax

MCQ
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Solution

Gift tax

Explanation:

  • Gift tax is a direct tax because it is paid directly by the person who receives the gift to the government.
  • On the other hand, GST, excise duty, and import duty are indirect taxes collected by intermediaries and passed on to the government.
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Chapter 16: Fiscal Policy - TEST YOURSELF QUESTIONS [Page 324]

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Frank Economics [English] Class 12 ISC
Chapter 16 Fiscal Policy
TEST YOURSELF QUESTIONS | Q 3. | Page 324
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