Cima F1 Exam Question No 34

Question No 34:

Which ONE of the following would be considered to be an example of an indirect tax?

A. An entity assessed for corporate income tax on its profit.
B. An individual purchases goods in a shop, the price includes VAT.
C. An employee has tax deducted from salary through the PAYE system.
D. An individual pays capital gains tax on a gain arising on the disposal of an investment.

Answer: B