Indirect Tax

Indirect tax sometimes also called hidden taxes are taxes that can be passed to the customers by being built into a higher price. In general, an indirect tax is a tax whose payment can be shifted to another party from the party legally responsible for remitting the tax to the government. It is often built into the price of a good or service. This means that when a new indirect tax is imposed, consumer prices of the effected goods and services generally increase as a result.