– If the government imposes tax on good, price of goods also increases.

– Demand will decrease as price increase.

– Hence market equilibrium will disturb and new marketing equilibrium exists.  Thus burden with the incidence of such taxes which is distributed between consumer and producer.

 – Consumer pay to the extent the price rises due to tax, is known as consumer share of tax on good/consumer burden.

– Similarly, producer has to pay some portion of the price rise due to tax is known as producer share/producer burden.