Which of the following is an indirect tax?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is Option 2 i.e. Goods and services tax
- Goods and services tax (GST) is an indirect tax.
- Indirect taxes are typically imposed on goods and services, and the burden of the tax is passed on to the end consumer.
- Capital gains tax, wealth tax, and gift tax are examples of direct taxes, where the tax liability falls directly on individuals or entities that generate income or wealth, rather than on goods and services.