Question

The ______ is on the person who pays it in the first instance.

Options

• incidence of tax

• impact of tax

• the burden of GST

• None of these

Answer 1

The impact of tax is on the person who pays it in the first instance.

Explanation:

The impact of tax refers to the person or entity that initially pays the tax. It is on the person who is legally responsible for paying the tax in the first instance, such as a manufacturer or retailer. The incidence of tax, on the other hand, refers to who ultimately bears the tax burden, which could be passed on to consumers.