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  • 14-06-2021
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4. Distinguish between impact and incidence of taxes​

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  • 14-06-2021

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  • 14-06-2021

Answer:

The term impact is used to express the immediate result of or original imposition of the tax. The impact of a tax is on the person on whom it is imposed first. Thus, the person who is Habile to pay the tax to the government bears its impact. The impact of a tax, as such, denotes the act of impinging.

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