Indirect taxes encompass a range of levies imposed on goods and services rather than income or profits, ultimately paid by consumers through higher prices.
Sales tax is a consumption tax imposed by governments on the sale of goods and services, typically calculated as a percentage of the selling price. It is paid by the consumer at the point of purchase and collected by the retailer, who then remits it to the government.
The concept of shifting and incidence of taxation refers to the determination of the economic entity that ultimately bears the tax burden. Certain taxes can be transferred to consumers through price adjustments, while others are absorbed by businesses.
A tax is a mandatory financial charge or some other type of levy imposed upon a taxpayer by a governmental organization in order to fund various public expenditures. Taxes include income tax, sales tax, property tax, estate tax, and others.
