Week3-1DQs - Consumption taxes is levied in the form of extra charges to the prices or tariffs for certain specific paid for purchases of goods and

Week3-1DQs - Consumption taxes is levied in the form of...

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Consumption taxes is levied in the form of extra charges to the prices or tariffs for certain specific paid for purchases of goods and services. The main types of consumption taxes sales tax and value added tax. Sales tax is due for sale of goods and has to be paid to the government as a percentage of all sales. This tax is usually added to the customer bill, so company does not pay it from the pocket. Value added tax is applied to every expense on each production stage of the product and paid when it finished. Many people consider the sales tax to be unfair. The reason for it is that companies obligate consumer to pay their share of the tax with the money that were already taxed to the government as an income tax, so it feels like they are paying twice. The term "excise tax" can have both extended and narrow interpretation. The group may include all excise taxes on goods and services (expanded interpretation). In this case, excise taxes are called not only

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