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What is mean by consumption tax?

While spending on goods and services one of the taxes we all spend on is this. It is considered as one of the most important forms of tax and is paid in restaurants, night clubs, bars. There are mainly two kinds of taxes:

  1. Sales tax
  2. Value added tax

Why is tax considered so vital?

Taxes are considered so necessary because it is the most important source of government’s income. With this money, they spend money on particularorganisation and authority, and this is the reason for all of the taxesbeing paid. There are also other varieties of taxes that are excise, expenditure, VAT and other sales tax.

Types of taxes:

  1. Sales tax
  2. Value added tax
  3. Excise tax
  4. Expenditure tax

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