An indirect tax is one in which the
burden can be shifted to others. The tax payer is
not the tax bearer. The impact and incidence of
indirect taxes are on different persons. Since,
most of the indirect taxes are not progressive in
nature, individuals may not mind to pay them, In
other words, indirect taxes are generally
regressive in nature. Therefore, individuals
would not be de-motivated to work and to save,
which may increase investment.