Indirect Taxation

Indirect taxation is a method governments use to collect revenue by taxing goods and services rather than individuals directly. When you buy products like food, clothes, or fuel, part of the price includes taxes such as sales tax or VAT. The business selling these goods then passes these taxes to the government. This approach allows governments to generate revenue efficiently from everyday transactions without taxing personal income directly. It’s a widespread system that influences the prices consumers pay and helps fund public services like healthcare, education, and infrastructure.