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Indirect taxation refers to the levying of taxes on goods and services rather than directly on individuals or businesses. This form of taxation is collected by intermediaries, such as retailers or service providers, who then pass the tax burden on to consumers through higher prices. Examples of indirect taxes include sales tax, value-added tax (VAT), excise duties, and tariffs. Unlike direct taxes, which are imposed on income or wealth, indirect taxes are embedded in the cost of goods and services, making them less transparent to taxpayers.