Indirect Tax

Indirect tax

• A tax imposed by the government that increase the supply costs faced by producerers, ultimately leading to higher prices for consumers.

  • A specific tax is a set taxt per unit

  • An ad volerm tax is a percentage tax like 20%

    • The main uk indirect tax is VAT

• Examples of indirect tax

  • VAT is 20%

  • Landfill tac is £80 per tonne for waste

  • Fuel duties is 58p per litre

  • Alchohol duties is 41.5 p per unit