The Government’s use of indirect taxation has increased by 49% in the past decade as it moves its tax base away from direct sources, according to Bloomsbury Professional, a leading London based tax and accounting information group

In comparison, the consultancy also discovered that amount of tax collected through direct levies has also grown 38% in the past decade,

The amount of indirect taxes collected by HM Revenue & Customs has grown from £93bn in 2003/04 to £138bn in 2013/2014 while HMRC’s receipts from direct taxes have risen at a slower pace, from £255bn in 2003/04 to £352bn in 2013/2014.

The total figure of tax raised by HMRC has increased by 43% in the last decade, from £344bn to £490bn.

Indirect taxes are levied by increasing the price of goods so that tax is included in the price charged to the consumer. Indirect taxes include VAT and insurance premium tax. Duties on customs, alcohol and tobacco are also forms of indirect taxes.

Many financial advisers believe indirect taxes have less of a negative impact on the incentive to create wealth than direct taxes such as income tax or inheritance tax.

A major advantage of Indirect taxes to HM Revenue & Customs is that they are cheaper to collect, however this can be offset by the complexity in administering them, meaning that the growing reliance on revenue from indirect taxation may create an increased opportunity for tax evasion.