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Definition and examples of indirect taxes and reasons why import duty is taxed on imported goods

Answer Text:
Indirect tax
These are taxes in which the impact is on one person and the incidence is partially or wholly on another person. The tax payer may shift either the whole or part of the tax burden to another person.
Such taxes are usually based on the expenditure on goods and services and include the following:
i. Sales tax: this is based on the sales made and may be assessed either as a percentage of the sales or a fixed amount V.A.T
ii. VALUE ADDED TAX (V.A.T): this is the tax that is levied on the value that a business adds borne by the consumer in the final price.
iii. Export duty: this is a type of tax that is levied on exports. The
objective may either to raise revenue or discourage the exploitation of some commodities.
iv. Import duty-this is tax levied on imported goods for the following reasons:
-Raising government revenue.
-Reducing incidences of dumping
-Discouraging consumption of imported goods with a view of boosting local production
-Protecting local industries
v. Excise duty: This is a type of tax that is imposed on goods that are manufactured and sold within a country.
-Raising revenue for the government
-Discouraging the consumption of some commodities such as beer and cigarettes.