PRC-3 · Chapter 16 · Question 7 of 20
A consumer buys a television. The price includes a 17% General Sales Tax (GST) that the electronics store collects and passes to the government. Because the consumer bears the burden but the store 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, and the legal burden to pay it can be shifted from the seller to the final consumer.
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