Indirect taxes (Outlays/ Expenditure taxes)

Indirect taxes are taxes imposed on commodities where the tax incidence and tax burden can be shifted by the tax payer to other parties for example by increasing commodity prices.

Examples of indirect taxes

1. Customs duty. This is the tax imposed on commodities leaving or entering the country. OR. This is the tax imposed on imports and exports of the country.
2. Excise This is a tax levied on domestically produced commodities.
3. Turn over tax. This is the tax levied on the total sales of the business at each stage of transaction of the
4. Sumptuary tax. This is a special tax levied on consumption of certain commodities which may be dangerous to human health. For example a tax on cigarettes, alcoholic drinks
5. Octori tax. This is tax levied on commodities in transit from one country to another through the territory of another country. For example commodities from Japan through Kenya to Uganda are charged octori tax by the Kenyan
6. Value added tax. (VAT). This is the tax imposed on the value of the commodity added at each stage of production.