what is the difference between impact and incidence of tax? under what – InterviewSolution

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1.	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.
Answer» tion: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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