When the demand for a commodity is inelastic who bears the greater burden of the indirect tax?

When the demand for a commodity is inelastic, consumers bear a greater burden of the indirect tax. This is because inelastic demand means that consumers are less responsive to price changes; they will continue to buy nearly the same quantity even as prices rise due to the tax. Producers may be able to pass on most or all of the tax to consumers in the form of higher prices, resulting in a larger share of the tax burden falling on the consumers.