indirect tax

Consumption-based government revenue

An indirect tax is a tax on goods or services rather than on income or property—collected by an intermediary (like a retailer) who passes the cost to consumers.

Sales tax, value-added tax, and excise duties on alcohol or tobacco are indirect taxes.

The term contrasts with direct taxes, which are levied straight on individuals or businesses.

mechanism

VAT

Incremental consumption tax

GST · value-added · stamp duty · sin tax · luxury tax · levy · surcharge · regressive · proportional · incidence

trade

customs

Traditional practices or import taxes

border tax · antidumping · countervailing · protectionism · trade barrier · WTO · retaliatory · trade war · quota · cross-border

compliance

evasion

Act of escaping detection

noncompliance · loopholes · tax return · registration · threshold · exemption · zero-rated · audit · enforcement · collection

impact

price increase

Rising cost of goods

market price · economic impact · revenue · fiscal policy · household spending · disposable income

Categories
Opposites
method of collection

indirect taxdirect tax

Charge on income directly

income tax · payroll tax · withholding tax · personal income tax · property tax

Family

taxing, indirect, indirectly, taxation, taxable, untaxed, indirectness, nontaxable

Familiarity
Top 500,000
Profile
Used worldwide · Timeless · Abstract · Rated G