Provincial and local governments rely on ________ as their primary source of tax receipts.

Question

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Indirect taxes, such as sales tax and excise tax, are typically collected by businesses on behalf of the government and passed on to consumers in the cost of goods and services. As such, they are a reliable source of revenue for provincial and local governments. Direct taxes from persons and enterprises may fluctuate depending on economic conditions and individual circumstances, while investment income may not always be a significant source of revenue.

Provincial and Local Governments Rely on ________ as Their Primary