This study addresses the
issue of who pays the commodity taxes in India. In view of the
importance of this aspect, known as incidence of tax, this study
contributes to an analysis of the progressivity or regressivity of the
The study estimates the incidence of major indirect taxes. It includes
in its coverage customs duty, and union excise duties levied by the
union government and sales taxes levied by the state governments.
The estimates of incidence of who pays the tax are presented by
expenditure groups. It also presents incidence of taxes on inputs even
when some times the set-off is partial.