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    				| 1. | What are the merits of an indirect tax? | 
| Answer» Merits of Indirect Taxes are: (i) Wide Coverage: The main merits of an indirect tax are that it touches all incomes groups. (ii) Consumption Control: By imposing an indirect tax, the consumption of an undesirable thing can be discouraged. (iii) Popularity: People are not always conscious of indirect taxes because, in most cases, it is combined with the price. | |