The main characteristics or features of indirect tax can be highlighted as follows:
1. Shifting Of Burden
In indirect tax, burden of tax can be transferred or shifted to other people or entities. Generally, indirect tax is shifted to the final consumers while purchasing goods or services.
2. Wide Base
Indirect tax covers wide area because it is imposed on all types of products or services and all types of people (poor people, middle class people and rich people).
It is almost impossible to avoid indirect taxes because these taxes are added with the purchase price of goods.
4. Convenient To Pay
It is very easy or convenient to pay indirect tax because it is imposed on the price of goods. So, the tax payers do not feel any inconvenient.
5. Elastic
Indirect tax is elastic in nature. It can be increased or decreased by the government according to the tax policy and need of the nation.
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6. Inflationary
It is inflationary in nature. Price of the products will increase if the tax is increased.
7. Uncertain
Indirect tax is uncertain. It means people cannot exactly calculate the amount of tax they paid and government also cannot determine the exact amount of tax collected from the public.
