In theory the tax was paid by the producers of the affected items, but in practice it fell on consumers, since the producers were limited to adding the tax to their prices. Even the glass of beer or whiskey that consumed or every pipe that smoked were subject to taxes. As Burns said, his business was "to oppress the publican and the sinner with the ruthless wheels of interior taxes."
The tax system in theory intended for producers to shoulder the burden, yet in reality, consumers ended up paying the costs. Producers often chose to pass on the tax to buyers by raising prices, creating a scenario where even simple pleasures like beer, whiskey, and tobacco were taxed heavily. This had a significant impact on consumer spending and behavior.
Niall Ferguson’s work highlights how these internal taxes effectively oppressed not only the general public but also the businesses that served them. As quoted from Burns, the taxation system was designed to drain money from both the publicans and those who indulged in vice, illustrating the harsh realities of the fiscal policies of the British Empire.
