Institution: Bank Asia Ltd Exam: Bank Asia Ltd - Management Trainee - 28.04.2017 ||
Topic: Bangladesh GK, Subject: Bangladesh GK (বাংলাদেশ বিষয়াবলী)

Best Answer Explained in Below-:

Value Added Tax (VAT) is classified as an indirect tax, while the other options—Income Tax, Wealth Tax, and Capital Gains Tax—are examples of direct taxes. The primary distinction between direct and indirect taxation lies in the manner in which the taxes are levied and collected.

Direct taxes are imposed directly on an individual or entity's income or wealth, meaning the taxpayer bears the economic burden of the tax. For example, Income Tax is based on an individual’s earnings, Wealth Tax is assessed on an individual's net wealth, and Capital Gains Tax applies to the profits gained from the sale of assets.

In contrast, VAT is a consumption tax levied on the value added at each stage of production or distribution. It is ultimately borne by the end consumer, as businesses collect VAT on sales but can reclaim VAT on purchases used in their operations. Thus, while it is included in the price of goods and services, the tax is not paid directly by the individual or entity earning the income or holding the wealth, making VAT an indirect form of taxation. This makes option A, VAT, the correct answer to the question.