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Advantages or merits of indirect tax

Answer Text:
MERITS OF INDIRECT TAX
I. Can be used selectively; It can be used selectively to achieve a given objective e.g. consumption of some commodities.
II. Tax payment is voluntary; indirect tax is only paid by those who consume the tax commodities therefore those who do not want to
pay the tax would only need to avoid taxed commodities.
III. Difficult to evade; the tax cannot be evaded because it is part of the price of the commodity. All those who buy the commodity taxed must therefore pay the tax.
IV. Stimulate effort; indirect taxes if increased increases the prices of goods and
services. People who want to maintain the same living standards will therefore have to work harder to be able to buy/affect the same goods and services.
V. Convenient; the tax is paid in bits as one buys the goods and services. The tax is also hidden in the price of the commodity and the payer may not be aware of it.
VI. Flexible; flexible; the government can raise or reduce the tax rate to suit the prevailing economic situation in a country.