Indirect taxes are paid by one person but the burden is shared partly or wholly by another person, such as sales tax and excise duty. Some merits of indirect taxes are that they are convenient to collect, revenue adjusts to economic activity so they are elastic, and they promote social welfare. However, some demerits are that indirect taxes can be regressive in nature, create uncertainty, discourage savings, be uneconomical, inequitable, and have no direct link to the government.

1. WELCOME

2. INDIRECT TAXMERITS & DEMERITS

3. INDIRECT TAX An Indirect tax is imposed on one person, but is paid either partly or wholly by another person. Eg:- Sales tax, Excise duty

4. MERITS OF INDIRECT TAX Convenience Elastic Equity Social welfare Prograssive in nature Easy to collect

5. DEMERITS OF INDIRECT TAX Regressive in nature Uncertainty Discourage savings More uneconomical Inequitable No direct link with the government

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