Indirect Tax 

A tax that is not paid directly to the government agencies but it is collected by intermediaries and paid by them to government agencies or states. For instance, a company might have to pay a fuel tax. The company pays the tax but can increase the cost of its products so consumers are actually paying the tax indirectly by paying more for the merchandise. Indirect tax raise the price of goods and services. Indirect taxes are not based on the ability-to-pay principle.  These are regressive taxes as it costs more to poor economically than to rich yet both are paying equal amount of tax.