Taxes, Tariffs, and Duties. Are those terms all the same?
25/1/19 Taxes, Tariffs, and Duties. Are those terms all the same?
A tax is any charge imposed on a taxpayer by a government. Taxes are levied upon people’s income, property, sales, etc. and collected by the authorities for public purposes.
Duties and tariffs (terms that are sometimes used interchangeably) are both forms of taxes imposed by the government on goods that are imported from some other country. A tariff is a specific tax that adds to the cost of imported goods and is one of several trade policies that a country can adopt to protect domestic industries. A duty is an indirect tax which is again imposed on all goods imported from other nations and generates revenue. The term duty may also refer to the custom duty imposed on the good of a single person bringing in something from another country as a personal usage item.
