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What is the definition of an indirect tax?
What is the definition of an indirect tax?
- A tax imposed on income and profits of individuals and businesses
- A tax levied upon goods and services before they reach the customer, who ultimately pays the indirect tax as a part of the market price of the good or service purchased (correct)
- A tax imposed on imports and exports of goods
- A tax collected directly by the government from the persons on whom it is imposed
How are indirect taxes collected?
How are indirect taxes collected?
- By the consumer directly paying the government at the point of purchase
- By the manufacturer from the consumer at the point of sale
- By an intermediary from the person who pays the tax included in the price of a purchased good, and then forwarded to the government (correct)
- By the government from the persons on whom it is imposed
How does a direct tax differ from an indirect tax?
How does a direct tax differ from an indirect tax?
- A direct tax is imposed on imports and exports of goods, while an indirect tax is imposed on income and profits of individuals and businesses
- A direct tax is only applicable to luxury goods, while an indirect tax is applicable to all goods and services
- A direct tax is paid by businesses, while an indirect tax is paid by individuals
- A direct tax is collected directly by the government from the persons on whom it is imposed, while an indirect tax is collected by an intermediary from the person who pays the tax included in the price of a purchased good (correct)
What is the impact of an indirect tax if the entity who pays taxes to the tax collecting authority does not suffer a corresponding reduction in income?
What is the impact of an indirect tax if the entity who pays taxes to the tax collecting authority does not suffer a corresponding reduction in income?
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What percentage of total tax revenue raised by the government was constituted by indirect taxes for all member countries in 2018?
What percentage of total tax revenue raised by the government was constituted by indirect taxes for all member countries in 2018?
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