Which of the following is an example of an indirect tax?
A)Value-added tax
B)Income tax
C)Inheritance tax
D)Head tax

Question

Quizplus · Accepted Answer

Indirect taxes are those taxes that are levied on goods and services rather than on the income or wealth of individuals. Examples of indirect taxes include value-added tax, excise tax, sales tax, and customs and duties tax. Out of the given options, only value-added tax is an indirect tax as it is levied on the value added to goods and services at each stage of production or distribution. Income tax, inheritance tax, and head tax are all examples of direct taxes that are levied on the income, property, or headcounts of individuals or entities.

Which of the Following Is an Example of an Indirect