Indirect Tax Flashcards
1
Q
What is an indirect tax?
A
It is a cost imposed by the government on producers of a certain type of good or service.This cost is partially passed on to consumers who purchase the good or service.
2
Q
What is a specific tax?
A
It is a fixed sum charged per unit .
3
Q
What is an advalorem tax?
A
It is a sum charged as a percentage of the selling price.
