The impact and incidence of sales tax is?
سیلز ٹیکس کا اثر اور بوجھ کس پر پڑتا ہے؟
- On the producer
- On the consumer
- On the seller
- None of these
Explanation
- Sales tax is an indirect tax imposed on goods and services.
- Although the seller collects the tax, the actual burden is usually passed to consumers through higher prices.
- Therefore, the incidence (final burden) of sales tax falls on the consumer.
- This is a key concept in tax incidence theory.
Last verified on 23-04-2026
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