Which of the following is classified as an indirect tax imposed by public authorities?

Correct Answer: Goods and Services Tax

Understanding Taxes: Direct vs. Indirect Taxes
Taxes levied by public authorities are broadly categorized into two main types based on who pays the tax and who bears its financial burden: Direct Taxes and Indirect Taxes.

1. Direct Taxes:
A direct tax is levied directly on an individual's or an organization's income, profits, or property. The key feature of a direct tax is that the burden of the tax cannot be shifted to anyone else; the person or business on whom it is levied must pay it directly to the government.
Examples of direct taxes include:
• Personal Income Tax: Imposed directly on an individual's annual income or wages.
• Corporate Income Tax: Imposed directly on the net profits generated by corporations and business enterprises.
• Wealth Tax: Imposed directly on the net wealth or accumulated assets of an individual.

2. Indirect Taxes:
An indirect tax is levied on the consumption of goods and services rather than on income or profit. The seller or service provider collects the tax from the end buyer/consumer at the point of sale and remits it to the public authorities. Therefore, the tax burden is shifted indirectly to the ultimate consumer.
• Goods and Services Tax (GST): GST is a comprehensive consumption tax levied on the supply of goods and services. When consumers purchase items or pay for service amenities, GST is added into the final price. Because consumers pay it through an intermediary (the seller), it is classified as an indirect tax.

Conclusion:
Among the given options, Corporate Income Tax, Wealth Tax, and Personal Income Tax are all direct taxes. Thus, Goods and Services Tax is the only indirect tax listed.