Indirect Taxation: Is It Good or Bad?

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INDIRECT TAXATION, IS IT GOOD OR BAD?
Imposing Taxation is not bad after all because this is one way how government raises income or revenues to be used for the expenses of the government. Thus; a good taxation process is a foundation of the country’s economic status. Indirect taxation, levied on articles of consumption, has this great advantage,—that the consumer has the power of taxing himself or avoiding taxation as he pleases, and government has the satisfaction of knowing that he generally pleases to tax himself to the full extent of his means. Any man may regulate his expenditure as he thinks proper, and he has only to pay indirect taxes in proportion to his expenditure. This privilege of self-taxation is so highly prized, that the proposal to do it away by the imposition of an income tax, constitutes to many minds a valid and insurmountable objection to a tax which would press in an equal ratio on all, without regard to those just and rational motives by which men regulate their expenditure, and, as a consequence, the amount of their indirect taxation.

We have seen that the advantages of indirect taxation are, that it is voluntarily imposed by each individual on himself; that he can increase or diminish it as his private circumstances require; that government rather gains, than loses, by allowing this liberty of self-taxation, as, in general, men tax themselves to the full extent of their means.

Indirect tax collected by manufacturer from distributor and distributor from retailer and then retailer from consumer that means indirectly collected from consumer in chain process where as direct tax is only collected from assessee. For eg: the manufacturer sold a product @ 200 to the other party.(the seller is the 1st party) add VAT @12.% that means total amount is 224., then 2nd party sold again the product in the market to consumer with inclusive VAT.…...

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