Indirect Tax (Noun)
Meaning
A tax levied on goods or services rather than on persons or organizations.
Classification
Nouns denoting possession and transfer of possession.
Examples
- The government implemented an indirect tax on luxury goods to reduce consumption and increase revenue.
- The new policy introduced an indirect tax on online transactions, which caused a stir among e-commerce companies.
- The indirect tax on petrol and diesel was increased by 10% to help the government balance its budget.
- The company was responsible for paying the indirect tax on imported raw materials used in their manufacturing process.
- The economist argued that indirect taxes, such as GST, are regressive and disproportionately affect low-income earners.