VAT, Excise Tax and Custom Duty are various forms of indirect taxes. They are imposed by the government with the intention of raising the final price of the product. Their prime objective is to reduce the consumption of that specific product. This mechanism is very simple. Obviously when the price will be high, lesser people … Read more

All economists have their own point of view when discussing the market in various stages of equilibrium. Some economists are strictly against government intervention. As subsidies and taxes imposed by the government disturb the market equilibrium prices and eventually cause the demand and supply curves to shift either inwards or outwards. On the contrary, government … Read more