what is sale tax and why the government collect the sale tax?



i have been hearing about the sale tax but i doesnt know what does actually it is and why it is collected and why government want 30% share in it ? please help me im teenager and wanna understand all the taxation queries

what is sale tax and why the government collect the sale tax?
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2 Replies to “what is sale tax and why the government collect the sale tax?”

  1. sales is a tax one pays when one buys an item[be it food from restaurant or furniture etc.] just like any other tax sales tax is used in the development of country, towards defense, road building & maintenance etc. so it is important that one pays bill & take a receipt


  2. The tax a buyer pays to the seller at the time of buying goods is called sales tax.In India,the rate of tax differs from state to state.While some states charge 10 % sales tax on a particular item ,other states charge 8-15 % on the same item.The entire sales tax is collected by the state Governments n is used for meeting their own developmental expenditure.

    Some states have introduced Value Added Tax (VAT) in place of sales tax.

    Currently.in India a debate is going on to replace sales tax with more appropriate tax.





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