When we buy a packet of biscuits, we pay a certain amount of tax. However, the tax is actually imposed on the _________.
A
taxpayer
No worries! We‘ve got your back. Try BYJU‘S free classes today!
B
trader
Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses
C
consumer
No worries! We‘ve got your back. Try BYJU‘S free classes today!
D
government
No worries! We‘ve got your back. Try BYJU‘S free classes today!
Open in App
Solution
The correct option is B trader When we buy certain goods and services, as customers, we pay a tax on them. This tax is actually imposed on the trader who sells the products. However, the trader includes the tax in the final price of the item, and the customer ends up paying the tax. This is called indirect tax.