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indirect tax

indirect tax

1 3.7
A tax added to the price of goods or services
  • noun
  • /ˌɪnˈdaɪrɛkt tæks/
translation icon : impuesto indirecto
  • Similarly, the CPI-targeting central bank would effectively be forced to tighten monetary policy in response to increases in indirect taxes.

Examples

  • For instance, the protesters' demand for lower indirect taxes is eminently proper.

    Academic text (2011)
  • One I favor the most is a sort of indirect tax on insurers.

    Blog text (3)
  • The end result will then be an indirect tax increase on working people.

    Blog text (11)
  • The main difference between the two is, therefore, that CPI includes indirect taxes and import prices.

    Blog text (8)
  • They are free at the point of consumption, but paid for dearly by direct and indirect taxes.

    Academic text (2005)
  • The burden of indirect taxes will continue to affect Indian manufacturers until a uniform goods-and-services tax is implemented.

    Academic text (2006)
  • Given the wide disparities in tax systems within the E.C., the aim was to approximate rather than to fully harmonize indirect taxes.

    Academic text (2006)
  • In recent weeks, Netanyahu has repeatedly promised to break up monopolies and cartels, increase competition, lower indirect taxes, and ease bureaucracy without increasing the deficit.

    Academic text (2011)
  • Israel's indirect tax burden totals 17.4 percent of GDP, compared with an OECD average of 10.3 percent.

    Academic text (2011)
  • An indirect tax on cigarettes helps to reduce smoking rates by making them more expensive.

Antonyms

direct tax
  • Specialized
2 4.2

A tax that a person or business pays directly to the government, not added to the price of goods

How Obvious

direct tax
  • Specialized
2 4.2
hidden tax
3 5.1
indirect tax
1 3.7

Surface Forms

indirect tax singular

Morphology

indirect + tax

The meaning is directly compositional: 'indirect' (not applied directly) modifies 'tax', so a learner who knows both words can infer a tax applied indirectly — typically via goods or services rather than directly on people. This pattern is cross‑linguistically common (e.g. Spanish 'impuesto indirecto'), making the phrase predictable for B1 learners.

Etymology

Indirect tax comes from the simple idea that the tax is added to the price of a product or service, so it is indirect to the buyer and the shop collects it for the government. That's why indirect tax means a tax 'on goods or services' rather than one charged 'directly' on a person's income.