Multiple choice

Which one of the following is an indirect tax?

  1. Income tax

  2. Corporate tax

  3. Capital gains tax

  4. Customs duty

Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Indirect taxes are levied on goods and services rather than on individuals or entities directly. Customs duty is a tax on imported goods, making it indirect. Income tax, corporate tax, and capital gains tax are all direct taxes paid directly by the taxpayer.

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