Q. Which of the following is an example of “Stealth Tax”?

[A] Personal Income Tax

[B] Corporate Tax

[C] Sales Tax

[D] Excise Tax

Answer: C

Stealth taxes are sometimes built into the prices of products so that consumers do not see how much tax they are paying.  

  • In comparison to income taxes and property taxes, stealth taxes are smaller and less visible.  
  • Because of their lower visibility they attract significantly less attention than income or property taxes.  
  • Governments find stealth taxes easier to collect than other types of taxes because the government collects them at the point of sale and they do not depend on a taxpayer’s income level.  
  • The most common stealth tax is the sales tax. 

Source: Ramesh Singh