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.
Explanation: A sales tax is classified as an indirect tax because it is charged on the sale of goods and services and is collected by the seller from the buyer. The seller then pays this tax to the government. Unlike direct taxes, which are directly imposed on an individual’s income or wealth, indirect taxes are passed on to consumers through higher prices.