Question

Which of the following is not an indirect tax?

• A. Excise duty
• B. Property tax
• C. Customs duty
• D. Service tax

Hint:

Indirect taxes are levied on goods and services and are passed on to consumers. Property tax is a direct tax levied on the value of property.

Answer 1

The Correct Option is B

Step 1: Understanding Indirect Taxes:
Indirect taxes are taxes that are levied on goods and services rather than on income or profits. These taxes are usually passed on to consumers in the form of higher prices. Common examples of indirect taxes include excise duty, service tax, and customs duty.
Step 2: Analyzing the Options:
- Option (A) Excise duty: Excise duty is an indirect tax levied on goods produced within the country. It is passed on to consumers in the form of higher prices.
- Option (B) Property tax: Property tax is a direct tax levied on the value of property owned by individuals or businesses. It is not an indirect tax.
- Option (C) Customs duty: Customs duty is an indirect tax levied on imports and exports. It is passed on to consumers in the form of higher prices for imported goods.
- Option (D) Service tax: Service tax is an indirect tax levied on services provided by businesses. The burden of the tax is passed on to consumers.
Step 3: Conclusion and Answer:
The correct answer is (B) because property tax is a direct tax, not an indirect tax.