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Indirect Taxes: Definition, Examples, and Impact

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Definition: Taxes collected from consumers by a retailer—like shops—and passed on to the government, for example, GST.

Taxes paid to the government by consumers, indirectly, through retailers, when they consume certain products and services. Whenever a consumer purchases a product or service, it usually includes indirect taxes on its value. GST, for example, is an example of an indirect tax.

Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing. This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.

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