Definitions [1]
Definition:Tax
A tax is money that people and businesses must pay to the government. The government uses this money to pay for things like schools, hospitals, roads, defense, and other public services.
Key Points
Key Points: Indirect Tax
- An indirect tax is charged on goods and services, not directly on income.
- It is paid when a product or service is produced, sold or purchased (e.g. GST in India).
- Producers and sellers can shift the burden to consumers through higher prices, so the person who pays it to the government is not the one who finally bears it.
