Question : Which of the following is an example of an indirect tax?
Option 1: Property tax
Option 2: Income tax
Option 3: Sales tax
Option 4: Corporate tax
Correct Answer: Sales tax
Solution : The correct answer is (c). Sales tax
Sales tax is a type of tax imposed on the sale of goods and services. It is typically levied as a percentage of the purchase price and is added to the final cost paid by the consumer.
Indirect taxes are taxes that are not directly imposed on individuals or entities but are instead levied on goods, services, or transactions. These taxes are usually passed on to the consumer by the seller or service provider. Sales tax is an example of an indirect tax because the burden of the tax is ultimately borne by the consumer, even though it is collected by the seller or service provider and remitted to the government.
Question : Which of the following is an indirect tax?
Option 1: Income tax
Option 2: Sales tax
Option 3: Property tax
Option 4: Excise tax
Question : Which of the following is an example of a non-tax revenue for a government?
Option 3: License fees
Option 4: Property tax
Question : Which of the following is an example of a direct tax?
Option 1: Sales tax
Option 2: Corporate tax
Option 3: Excise tax
Option 4: All of the above
Question : Which of the following is not an example of direct tax?
Option 1: property tax
Option 2: tax on assets and gift to the government
Option 3: service tax
Option 4: income tax
Question : What is the primary source of revenue for most governments?
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