Which of the following is an **indirect tax**?

1. Capital gains tax
2. Goods and services tax
3. Wealth tax
4. Gift tax

Question

Which of the following is an **indirect tax**?

1. Capital gains tax
2. Goods and services tax
3. Wealth tax
4. Gift tax

Accepted Answer

**Solution:**

1. An **indirect tax** is collected by an intermediary from the person who ultimately bears the economic burden of the tax.

2. **Goods and services tax (GST)** is a consumption tax imposed on goods and services, making it an indirect tax.

3. Other taxes like **capital gains tax, wealth tax, and gift tax** are levied directly on income, wealth, or assets, so they are direct taxes.

**Answer:** Goods and services tax

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