Multiple choice

Which of the following is an indirect tax?

  1. Income Tax

  2. Corporate Tax

  3. Wealth Tax Estate Duty

  4. Value Added Tax
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

An indirect tax is collected by an intermediary from the person who bears the ultimate economic burden of the tax. Value Added Tax (VAT) is a classic example of an indirect tax, whereas income and corporate taxes are direct taxes.

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