PRC-3 · Chapter 16 · Question 15 of 20
A consumer buys a laptop. The price includes a 17% General Sales Tax (GST). The store collects this money and gives it to the government. Because the consumer bears the burden but the store legally pays it, this is an:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Indirect tax
Explanation
An indirect tax is levied on goods and services where the statutory liability lies with the seller, but the actual economic burden is shifted to the buyer.
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