State two differences between tax on income and tax on a commodit… - Vidyadip

Question

State two differences between tax on income and tax on a commodity.

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Answer

Tax on Income and Tax on a Commodity
(i) Tax on income is a direct tax while tax on a commodity is an indirect tax.
(ii) The burden of tax on income cannot be shifted on the others, while the burden of tax on a commodity can be shifted wholly or partially on to its buyers in form of higher prices.

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