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Sticky Note
The impact and incidence of sales tax is?
سیلز ٹیکس کا اثر اور بوجھ کس پر پڑتا ہے؟
  1. On the producer
  2. On the consumer
  3. On the seller
  4. 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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