Economy, asked by mdsabeedali802160, 1 day ago

what is the difference between impact and incidence of tax? under what circumstances is partial or complete shifting of tax possible? explain with the help of diagram.

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Answered by Anonymous

Explanation:

Impact refers to the initial burden of the tax, while incidence refers to the ultimate burden of the tax. ... The impact of a tax falls upon the person fr6m whom the tax is collected and the incidence rests on the person who pays it eventually. For example, suppose a tax — excise duty — is imposed on soap.

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what is the difference between impact and incidence of tax? under what circumstances is partial or complete shifting of tax possible? explain with the help of diagram. ​

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what is the difference between impact and incidence of tax? under what circumstances is partial or complete shifting of tax possible? explain with the help of diagram.