Which of the following is NOT a common type of indirect tax?

Income Tax is not considered an indirect tax; it is a direct tax. With direct taxes, the taxpayer is responsible for paying the tax directly to the government based on their income, profits, or gains, making it a personal liability. In contrast, indirect taxes are levied on goods and services rather than on income or profits, with the tax burden often passed on to the consumer through higher prices.

Value Added Tax (VAT), Excise Duty, and Customs Duty are all forms of indirect taxes. VAT is a consumption tax applied at each stage of production or distribution, excise duties are levied on specific goods, such as alcohol and tobacco, and customs duties are tariffs placed on goods imported into a country. These types of taxes are generally included in the price of goods and services, meaning consumers indirectly pay them. Consequently, identifying Income Tax as the option that does not fit within the category of common indirect taxes demonstrates an understanding of the fundamental concepts of tax classification.