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Inequitable:
Indirect taxes are not equitable because the burden of these taxes on poor is greater than burden on rich.

Uneconomical:
These taxes are uneconomical. Government has to spend a large amount on collection of these taxes. The taxed commodities passed through a number of middlemen and each middleman adds something to the tax, so final consumer has to pay much amount the received by the Government.

Uncertainty:
The amount of indirect taxes to be collected can not be estimated with certainty because an increase in tax increase the price of commodity which may result in the fall of demand.

Inflationary:
Indirect taxes build up inflationary pressure in the economy. If Government depends heavily on indirect taxes, the prices will increase rapidly.

Non-Awareness:
Indirect taxes do not develop awareness in the tax payer because no body feels that he is paying a tax as it is included in price.

Evasion:
There are more chances of evasion indirect taxes because manufacturers pay fewer taxes with the understanding of the government official.

Discourage Industries:
If the raw material largely used by the industrial sector is taxed indirectly then it discourages the expansion of industrial sector.

Unfair Profit:
Producers and sellers increase the price of commodities than the rate of tax and earned abnormal profit. So burden is on consumers.

Unemployment:
If high taxes are levied on commodities then people reduce to purchase these commodities as a result of which the production and employment are also increased.