Features
- Indirect taxation is policy often used to generate tax revenue. Indirect tax is so called as it is paid indirectly by the final consumer of goods and services while paying for purchase of goods or for enjoying services.
- Indirect tax is broadly based since it is applied to everyone in the society whether rich or poor.
- The tax payer who pays the tax does not bear the burden of tax; the burden is shifted to the ultimate consumers.
- In the case of a direct tax, the taxpayer has to bear the burden of tax personally; in case of indirect tax the taxpayer and the taxbearer are not the same person.
Read more about this topic: Indirect Tax
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