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Question

Which of the following is an indirect tax?


A

Paper tax

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B

Income tax

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C

Wealth tax

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D

Sales tax

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Solution

The correct option is D

Sales tax


Indirect taxes are imposed indirectly on customers who consume goods and services that are taxed by the government. Wealth tax, income tax, paper tax are direct taxes. Sales tax is an indirect tax imposed by the government on the sale of goods and services.


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