Multiple choice

Which of the following tax burdens can be shifted to other person?

  1. Value Added Tax

  2. Estate Duty

  3. Corporate Tax

  4. Securities Transaction Tax
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

It is shifted. The value added tax is paid on the value added at each stage in goods and services from the production to retail stage. For instance, the wheat is converted into flour, which is the value added in the wheat. The person who adds the value by converting it into flour pays the tax, but finally charges it to the person to whom the flour is sold. Hence, its burden is shifted.

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