Which among the following is an example of an indirect tax?

Correct option is C

Ans. (c) Sales tax

Sol.

• Indirect taxes are those that are collected by an intermediary (like a shopkeeper) from the person who bears the ultimate economic burden of the tax (the consumer).

• Sales tax is added to the price of goods and paid by the buyer, making it an indirect tax.

• In contrast, income tax, wealth tax, and corporation tax are direct taxes paid directly by individuals or entities.