Indirect taxes are levies imposed on the production, purchase, or consumption of goods and services, rather than directly on income or wealth.

• Key examples include value-added tax (VAT), sales tax, and excise duties.
• They are collected by intermediaries, such as businesses, and passed on to consumers via higher prices.
• The economic incidence (burden) of indirect taxes typically falls on consumers, influenced by the price elasticities of demand and supply.