If we take India in the taxes one of the important sources of revenue and only in the world wide indirect tax is the major source of tax revenue and it continues to grow because many countries are actually shifting to the consumption tax regime,
(a)In India more than 50 percent of the total tax revenue actually comes from indirect access.
(b)These indirect taxes are actually taxed on commodities as the will is services. this tax will be levied on commodities or the time of manufacture or purchase or sale or import or export.and so we call it as commodity taxation .it is not really levied on commodities but these taxes are also levied on services.
(c)There is a shifting of burden:-it means if a supplier buys a product and if he pays GST he can recover that GST from his buyer because when he sells it he will sell at a price including the GST so taxes included in the cost of the commodity and the burden has shifted.and the best part is there is on preception of a direct bunch of indirect tax .because the prize or the prize includes GST so GST is imbued in the place and taxpayers will pay with the UN actually knowing that they are paying taxes.so this indirect tax does not bossi data things like direct taxes
(d)Inflationary:-livi of indirectly taxes actually causes an all-round price vital .it has been clear that the price of commodities and services because they are going to become costly because of this additional element and this leads to an inflationary drain
(e)Wider tax base indirect taxes have a wider tax base:-It means a made majority of products and services are taxed but of course with the different rates. majorities of the products and services are under indirect taxes or with a low threshold.then the indirect tax actually promotes social welfare because high taxes are levied on the harmful product are as good as we tell them to say like alcoholic products tobacco products on these high taxes. this would enable the government to cheque their consumption because of high-cost people may not buy them and at the same time if they are buying government is also getting substantial revenue in the form of indirect tax then this is regressive in nature.indirect taxes are regressive in nature it means both rich and poor have to pay the same rate of indirect taxes.
This actually increases the income disparities between the rich and poor