wiz-icon
MyQuestionIcon
MyQuestionIcon
1
You visited us 1 times! Enjoying our articles? Unlock Full Access!
Question

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.

flag
Suggest Corrections
thumbs-up
0
Join BYJU'S Learning Program
similar_icon
Related Videos
thumbnail
lock
Summary
ECONOMICS
Watch in App
Join BYJU'S Learning Program
CrossIcon