A sales tax is a type of A. progressive tax.
B. indirect tax.
C. proportional tax.
D. direct tax.
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A sales tax is a type of A. progressive tax.
B. indirect tax.
C. proportional tax.
D. direct tax.
The correct answer is B. indirect tax.
A sales tax is considered an indirect tax because it is collected by sellers at the point of sale and then passed on to the government. Consumers pay the tax as part of the purchase price, but they do not pay it directly to the tax authorities. Instead, the seller is responsible for remitting the tax collected.