WAEC Economics 1999 Question 43

Question 43

Public Finance

Which of the following is an indirect tax?

  1. A.Income tax
  2. B.Company tax
  3. C.Profit tax
  4. D.Sales tax
Show the answer and explanation

Answer: D (Sales tax)

Explanation

Sales tax is on goods and can be passed on to buyers, so it is indirect; the others are taxes on income.