Indirect Taxation Flashcards
1
Q
What is an indirect tax payed on
A
An indirect tax is paid on the consumption of goods and services
2
Q
what is a Specific Indirect tax
A
A fixed tax per unit of output
3
Q
What is an Ad Valerian indirect tax
A
A tax that is a percentage of the purchasing price
4
Q
Who pays the incidence of indirect tax
A
Both the consumer and producer pay the incidence the PED of the product determines ow much each party pays.
