Indirect tax is a tax collected by an intermediary (such as a retail store) from the person who bears the ultimate economic burden of the tax (such as the consumer). This means that the tax is not directly deducted from the income of the consumer, but deducted at the point of buying goods and services.
An indirect tax is regressive in nature because everyone is made to pay the same tax rate. It doesn't take into consideration the income or social status of the buyer. Since they are flat taxes, they take a higher percentage of income on the poor than on high-income earners.
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