indirect tax Synonyms
No Synonyms and anytonyms found
indirect tax Meaning
Wordnet
indirect tax (n)
a tax levied on goods or services rather than on persons or organizations
indirect tax Sentence Examples
- Indirect taxes are levied on the consumption of goods and services, not on income or wealth.
- Value-added tax (VAT) is a common type of indirect tax applied at each stage of production and distribution.
- Customs duties and excise taxes are examples of indirect taxes imposed on imported goods and specific commodities, respectively.
- Indirect taxes are often shifted to consumers, as businesses pass on the tax burden in the form of higher prices.
- The incidence of indirect taxes depends on the elasticity of demand for the taxed goods and services.
- Governments use indirect taxes as a source of revenue to fund public services.
- Critics argue that indirect taxes disproportionately burden lower-income households, as they spend a higher proportion of their income on consumption.
- Selective indirect taxes, such as excise taxes on tobacco and alcohol, can be used to discourage harmful behaviors or raise additional revenue.
- Indirect taxes can have macroeconomic effects, such as influencing inflation and economic growth.
- The design and implementation of indirect tax systems can significantly impact their distributional and economic consequences.
FAQs About the word indirect tax
a tax levied on goods or services rather than on persons or organizations
No synonyms found.
No antonyms found.
Indirect taxes are levied on the consumption of goods and services, not on income or wealth.
Value-added tax (VAT) is a common type of indirect tax applied at each stage of production and distribution.
Customs duties and excise taxes are examples of indirect taxes imposed on imported goods and specific commodities, respectively.
Indirect taxes are often shifted to consumers, as businesses pass on the tax burden in the form of higher prices.
