Unit 3.4 · Economics of Inequality and Poverty
Indirect Taxes
AO2
Syllabus Requirement
Covers the nature and purpose of indirect taxes(which are regressive) such as sales tax or VAT, and their role in influencing consumer behavior and generating government revenue.
Assessment Objectives
AO2Application and Analysis
Summary
This topic discusses indirect taxes and their impact on income inequality and poverty. It explains how different tax systems, such as progressive, regressive, and proportional taxes, affect individuals with varying income levels. Understanding these tax structures is important for analyzing their effects on economic equity.