19 Indirect Tax

This video explains indirect taxes, detailing how they are levied on goods and services and passed on to consumers through higher prices. We explore common examples like VAT and excise duties, and the reasons governments implement them, such as revenue generation and discouraging consumption of harmful products. The video then uses a demand and supply diagram to illustrate the economic impact of a specific indirect tax, showing how it creates a wedge between consumer and producer prices, reduces quantity transacted, and leads to a deadweight loss. Subscribe to @AxiomTutoringCourses for more educational content.