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What is the absolute tax incidence?

Absolute tax incidence determines the incidence of a tax assuming that no other tax would be levied in its absence. You can read about the Taxation in India – Direct taxes & Indirect Taxes, Features of Taxation System in the given link.

With no changes in the total tax revenue, when one tax substitutes another tax, the resulting changes in the distribution pattern of the economy is known as differential tax incidence. 

Further readings:

  1. Economics Notes For UPSC Examination
  2. UPSC Mains General Studies Paper-III Strategy, Syllabus & Structure

Related Links

Revenue Receipts- Tax Revenue and Non-Tax Revenue (UPSC Notes)

Direct Tax Code (DTC) – Implementation, Objectives, Pros & Cons

CBDT – Central Board of Direct Taxes: Functions and Structure

Double Taxation Avoidance Agreements (DTAA) – Countries Involved, Income Tax Provisions

Central Board of Indirect Taxes & Customs (CBIC) – Functions 

Global Corporate Tax and India: RSTV- Big Picture

Minimum Alternate Tax (MAT) – UPSC Indian Economy Notes

Carbon Tax – Meaning and an Overview [UPSC Notes]

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