What are the merits of an indirect tax? – InterviewSolution

1.

What are the merits of an indirect tax?

Answer»

Merits of Indirect Taxes are:

(i) Wide Coverage: The main merits of an indirect tax are that it touches all incomes groups.

(ii) Consumption Control: By imposing an indirect tax, the consumption of an undesirable thing can be discouraged.

(iii) Popularity: People are not always conscious of indirect taxes because, in most cases, it is combined with the price.

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