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