Indirect tax refers to a type of tax that is paid by the consumer without their explicit knowledge. This tax is often included in the price of goods or services, making it somewhat hidden from the consumer's view. It is typically collected by the seller and then passed on to the government. Examples of indirect taxes include sales tax, value-added tax, and excise duties. Understanding the concept of indirect tax is important for individuals and businesses alike, as it can have a significant impact on pricing and purchasing decisions.