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Financial Terms

Indirect Tax

Indirect taxes are levied on goods and services by the government, and are collected by either the manufacturer or retailer in the supply chain. These taxes, such as the Goods and Services Tax (GST), are not directly paid by the consumer, but are embedded in the price of the product or service. This type of tax is important to understand in the world of finance, as it can impact the overall cost and profitability of a business. By recognizing the role of indirect taxes, we can gain a deeper understanding of how they contribute to the economic landscape.
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