Home > Term: indirect taxation
indirect taxation
Taxes that do not come straight out of a person’s pay packet or assets, or out of company profit. For example, a consumption tax, such as value-added tax (see expenditure tax). Contrast with direct taxation, such as income tax. Indirect taxation has become increasingly popular with politicians because it may be less noticeable to people paying it than income tax and is harder to avoid paying.
- Part of Speech: noun
- Industry/Domain: Economy
- Category: Economics
- Company: The Economist
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