Indirect taxes:

Taxes imposed on goods and services rather than on income or profits. For
example value added tax or excise tax.

An increase in bus prices may be a result of rising incomes. When people

have more disposable incomes, they will more likely travel more and hence
demand would increase. Moreover, an increase in population might also
cause a higher demand as more people will have to travel for work or other
purposes.

Unemployment is the unavailability of jobs in an economy. When a

government reduces it’s funding to the education sector, there will be less
schools and therefore less school related jobs will be created resulting in
unemployment. When less people are earning, the aggregate demand will
decrease and firms will have to cut back on the supply to match demand.
This may result in structural unemployment as labor workers may be made
redundant. Moreover when less spending on education means fewer
people will acquire education and will therefore lack skills that are needed
to gain employment.

Increases taxes on food will provide the government with a higher tax
revenue as food has an inelastic demand. This means that the government
will be able to spend more on other sectors such as health, education and
agriculture. Moreover, this may reduce the problem of obesity and improve
the overall health of population and hence, less burden on healthcare
facilities.
In contrast, increasing food prices means that the poor will be left with a
less disposable income and may not be able to afford their basic
necessities resulting in poverty. When people are not eating enough, their
labor productivity will be low and hence supply of goods and services may
be low. This will also cause social injustice as food taxes are regressive.
Taxes on food may also cause inflation as firms try to retain the profits they
lost due to high cost of production. To conclude, taxes should not be
imposed on food as a fall in demand may lead to low production and hence
cause unemployment.