The concept of an indirect ad valorem tax may seem complicated, but it's actually quite simple. This tax is applied to certain luxury goods, such as toiletries, cosmetics, and jewellery, based on a percentage of their value. These items are considered non-essential and typically come with a higher price tag. Examples of such items include pearls, precious stones, and metals. This tax is meant to discourage the purchase of these items and generate revenue for the government. So, the next time you splurge on expensive cosmetics or jewellery, remember that a portion of your purchase goes towards this indirect ad valorem tax.