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An example of an indirect tax is

Economics
JAMB 2008

An example of an indirect tax is

  • A. profit tax
  • B. sales tax
  • C. capital gain tax
  • D. poll tax
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Correct Answer: Option B
Explanation

Indirect taxes are those taxes that can be shifted from one individual to another. It is not levied directly on the income of the taxpayer, but is levied on the expenses incurred by them. These include taxes such as sales tax and excise duties. 

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