An indirect tax is imposed on one person or group, like manufacturers, then shifted to a different payer, usually the consumer. Unlike direct taxes, indirect taxes are levied on goods and services, not individual payers, and collected by the retailer or manufacturer. Sales and Value-Added Taxes (VATs) are two examples of indirect taxes.
Examples of indirect taxes are excise tax, VAT (Value added tax), service tax, custom duty, sales tax, entertainment tax, Goods and services tax and Securities Transaction Tax.
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