What type of tax is typically charged on goods and services?

The correct answer is indicative of the nature of indirect taxes, which are typically levied on goods and services during the supply chain. Unlike direct taxes, which are imposed directly on the income or profits of individuals and businesses, indirect taxes are collected by intermediaries (like retailers) from consumers who ultimately bear the cost.

Indirect taxes can include Value Added Tax (VAT) and goods and services tax (GST), which are added to the price of products at each stage of the supply chain. When consumers purchase these goods and services, they pay the tax included in the price, thus making them responsible for the tax indirectly.

This contrasts with other types of taxes mentioned in the options. For example, excise taxes are a subset of indirect taxes specifically targeting certain goods such as alcohol or tobacco, while direct taxes, like income tax, are charged on earnings rather than purchases. Property tax, on the other hand, is assessed on real estate and is not related to transactions on goods and services. Therefore, the classification of taxes on goods and services as indirect tax is accurate and reflects standard taxation principles in many jurisdictions.