How taxation affects the supply chain?

[Good-Person]

Supply chain is a process that involves a cycle that starts when a product is manufactured and reaches the customer or the consumer in the end. Obviously taxation plays a very big role in this regards. So, how does this affect the supply chain process?

 

[Debashis]

Taxation can impact the supply chain by increasing costs for businesses, which can lead to higher prices for consumers. It can also create incentives for businesses to shift their operations to countries with lower tax rates, affecting the location and structure of supply chains.