Indirect taxes - Posters

Poster 1: Government Intervention – Indirect Taxes
This poster explains what indirect taxes are and why governments use them. It outlines the difference between specific (unit) taxes and ad valorem taxes, showing how they are collected on spending and often passed on to consumers through higher prices. The poster also highlights the key purposes of indirect taxes, such as raising government revenue and discouraging the consumption of demerit goods that cause negative externalities.

Poster 2: Effects of an Indirect Tax on a Market (Graphical Analysis)
This poster focuses on the economic impact of an indirect tax using supply and demand analysis. It shows how an indirect tax shifts the supply curve upwards, leading to a higher price for consumers, a lower quantity traded, and changes in consumer and producer surplus. The poster also explains tax incidence and highlights that, while indirect taxes can reduce harmful consumption and raise revenue, they may create welfare loss in the market