Indirect tax is a type of tax, which is collected for the benefit of the government through an intermediary. This tax is imposed on expenditure, consumption and sales, unlike direct taxes imposed on income, assets and profits.
It is the financial value paid by the person in charge temporarily, and it is possible to transfer its tax burden to another person. This tax is sometimes imposed on services or consumables, and is paid indirectly by the person who wants to consume something.
Types of indirect taxes:
Consumer tax: The first type of indirect tax, which is an alternative to income, where this type of taxation is imposed on individuals when spending or consumption such as telephone, Internet, transports fees, etc.
Sales tax is a tax imposed on all products in the case of trading or selling, and is a cumulative tax to impose on each stage of the circulation of products, for example, imposed when the sale of the product from producers, and then imposed again when selling the goods from wholesalers to retailers.
Trading taxes: Taxes are levied when property and wealth are transferred from one person to another.
Advantages of indirect taxes:
1- Relative abundance of proceeds.
2- Lack of a sense of taxpayer and thus reduce tax evasion.
3- Gradual collection over the year and not associated with the end of the calendar year or financial.
4- Lower collection costs.
The disadvantages of indirect taxes
1- Indirect taxes do not create civic awareness among senior taxpayers because a person who buys a commodity does not know that he pays taxes to the government.
2- Uneconomical because its cost is high.
3- unfair to some because the rich and the poor are buying goods at the same price.
4. When the price of a commodity increases with a tax, the demand decreases. As a resul