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    Question

    Which of the following statements about Indirect Tax is incorrect?

    A The burden of the tax can be shifted to another person. Correct Answer Incorrect Answer
    B This tax is paid by the final consumer of goods and services. Correct Answer Incorrect Answer
    C This tax helps in reducing inflation. Correct Answer Incorrect Answer
    D This tax is regressive in nature Correct Answer Incorrect Answer

    Solution

    The incorrect statement is that indirect tax helps in reducing inflation. Indirect taxes, such as VAT and sales tax, are often passed on to consumers, leading to increased prices, which can contribute to inflation rather than reduce it.

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