The impact and incidence of sales tax is?
Lecturer Economics Past Papers and Syllabus / All — Multiple-choice practice
سیلز ٹیکس کا اثر اور بوجھ کس پر پڑتا ہے؟
- A. On the producer
- B. None of these
- C. On the seller
- D. On the consumer
Correct answer
On the consumer
Explanation
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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