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| Q. |
The incidence of Tax refers to - |
| A. | Who pays the Tax? |
| B. | Who bears the burden of Tax? |
| C. | How Taxes can be shifted? |
| D. | Who transfers the Tax burden? |
| Answer» B. Who bears the burden of Tax? | |
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Explanation: In economics, tax incidence is the analysis of the effect of a particular tax on the distribution of economic welfare. Tax incidence is said to "fall' upon the group that ultimately bears the burden of, or ultimately has to pay, the tax. |
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