Banking Exam Question - What is Indirect Tax? What are the Pros & Cons of Indirect Tax in Nepal? Explain

Introduction - Indirect Tax & It's Pros and Cons

If the government has been taxed on, the person transfers the load or the tax burden to another person, and that is indirect tax. Indirect taxes can be transferred from one person to another. The monetary weight and the last weight does not have the same value. Expressions of expression and obligation to bear the burden is not the same. Such taxes are used for consumption and expenditure. For example, value is tax, free of charge, customs duties and indirect taxes.

Indirect Tax Advantages:

• The taxpayer does not have to pay indirect taxes at all. The taxpayer is convenient when the item is payable only after the service and consumption.
• The taxpayer does not have the same amount of money to pay for the goods and services.
• People who receive and consume goods or services pay an indirect tax when there is a wide variety of public participation.
• When tax is collected from the consumer, the tax prospect is less likely to tax taxpayers.
• Consumption and consumption of goods affecting the health and economy of the public can be controlled at a high rate of tax.

Indirect tax Disadvantages:

• According to the indirect tax, the reign of the perpetrators may not always be achieved because demand for goods and service is not unanimous.
• The rich and poor consumers who have consumed goods and services should pay the same tax, which are not fair and practical.
• Government may have adverse effects on consumption, income, employment etc. etc. if the government has imposed high rates indirect tax.
• Consumer taxes may not be taxed because they are taxed on goods and service rates. In turn, the taxpayer's interest may be lower for the use of such tax.