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Manual of Accounting of Indirect Taxes PDF Form

Manual of Accounting of Indirect Taxes PDF Form

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60 seconds on indirect taxes now indirect taxes attacks on suppliers that increases their supply costs and because of that less can be supplied at each price meaning there's an inward shift of supply ninja attacks will normally increase price therefore causing a contraction of demand but the impact or the burden of attacks depends on the price elasticity of demand in this situation coefficient of elasticity is pretty high more than one then most of the tax will be absorbed by the supplier whereas if demand has a lower price elasticity perhaps less than one the majority of an indirect tax can be passed on by the business so the consumer in the form of a higher price and indeed if demand is perfectly inelastic a coefficient of ill assistive zero then all of an indirect tax is paid for by the consumer

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