Indirect tax

Indirect tax is a type of tax that you have to pay when you buy things from a store or when you use certain services. It is called an "indirect" tax because it is not directly taken from your paycheck or your savings account. Instead, it is included in the price of the things you buy or the services you use.

Let's say you want to buy a toy from a store. When you go to pay for the toy, you may notice that the price is a little bit higher than you expected. That's because the store has added an indirect tax to the price of the toy. This tax goes to the government to help pay for things like schools, roads, and hospitals.

Similarly, when you use certain services like getting a haircut or going to the movies, you may notice that there is an extra charge included in the price. This is also an indirect tax that goes to the government.

Indirect taxes can vary depending on where you live and what you buy. For example, some places may have a higher indirect tax on items like cigarettes or alcohol to try to discourage people from buying them.

Overall, indirect taxes are a way for the government to collect money to pay for important things that benefit everyone in the country, but they can make things a little bit more expensive for you as a consumer.