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Indirect Taxes
Indirect Taxes
BY
P. MARWA
1. Convenient
Indirect taxes are imposed on production, sale and movements
indirect taxes.
Therefore, the customer has no option to evade the indirect
taxes.
them.
4. Elastic
Some of the indirect taxes are elastic in nature
government.
TRA TANZANIA REVENUE AUTHORITY
ADVANTAGES / MERITS OF INDIRECT TAXES
CONT’D
5. Universality
Indirect taxes are paid by all classes of people and so they are broad
based.
Poor people may be out of the net of the income tax, but they pay
to save.
Most of the indirect taxes are not progressive in nature,
indirect taxes.
Therefore, cost of tax collection per unit of revenue raised is
The rich and the poor have to pay the same rate of
revenue
customers may not pay indirect taxes with the support of sellers.
For instance, individuals may purchase items without a bill, and
therefore, may not pay VAT (Value Added Tax), or may obtain the
services without a bill, and therefore, may evade the service tax.
Indirect taxes are taxes which the which the burden can be
shifted to others
The registered tax payer is not the tax bearer
Most of indirect taxes are regressive in nature