Q. What is 'Tax Incidence', recently mentioned in news?
Answer:
The division of tax burden between stakeholders
Notes: The Union government has stated that the Goods and Services Tax (GST) has reduced the tax burden on common people. Tax incidence refers to how a tax burden is divided between stakeholders such as buyers and sellers. There are two forms: statutory incidence, which determines who is legally responsible for paying the tax, and economic incidence, which reflects the final burden on economic welfare.