Who bears the incidence of tax?

If demand is more elastic than supply, the burden of tax will fall on producers. You can read about the Tax Administration Reform Commission (TARC) – Mandate, Report, Recommendations in the given link.

If the supply is more elastic than the demand, then the burden of tax will fall on buyers.

Further readings:

  1. Tax Policy Council & Tax Policy Research Unit: Notes for UPSC
  2. Taxation in India – Direct taxes & Indirect Taxes, Features of Taxation System

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