Duty VS Tariff
Key difference between the word “Duty” and “tariff” is that both refer to the taxes that the government imposed on imported product. Duty refers to the taxes imposed by the govt on specific commodities, financial transactions, estates, etc. While Tariff represents the tax that is levied on imports or exports.
as you know that the basic source of income for the government is taxation. Taxes are categorized into various types, duties, and tariffs of them. Govt levies such taxes on its own citizen or the citizen of other countries.
What is Tariff
Tariff is such type of taxation that is lavies by the govt on import and export transactions. literally, the word tariff shows a list of prices, therefore in some places govt uses the term teriff in relevance to the things like as rail service, bus routes, and electrical usage. However in general both term refers to the taxes levied on the imports and exports.
What is Duty
The Duty is other kind of taxation that is levied on commodities, financial transactions, estates, etc. Duties are categorized into many other types including import duties, excise duties, stamp duties, death or succession duties, etc.
The word duty can be described in different ways, as customs duty, import duty, export duty, and sometimes refers as a duty as well. Customs duty is an indirect tax that is imposed by the govt on the transactions of commodities in international trade. Import duty is another kind of duty that refers to the taxation levied by the govt on imported goods. Export duty shows the duties imposed by the government on goods that export from the country. Another term most used for duty is “tariff” which described the list of commodities along with rates.
Difference Between Duty and Tariff
The key difference between a Tariff and Duty is that a Tariff is used form of duty or tax levied on goods for protective and revenue purposes when they are transported from one customs location to another while on the other hand custom duties refers as the collected income from tariff taxes.
|Description||kind of taxation that is levied on commodities, financial transactions, estates, etc||A tax on imports or exports or a list of prices for such things as rail service, bus routes, and electrical usage.|
|Types||Customs duty – synonymous with tariff
Estate duty – a tax levied on the estate of a deceased person in many jurisdictions or on the inheritance of a person.
|In customs||Customs duty or tariff is based generally on the value of goods or upon the weight, dimensions, or some other criteria of the item (such as the size of the engine, in case of automobiles).|
|Other uses||Import duties, excise duties, stamp duties, death or succession duties, etc.||As a general list of prices|
Related: Difference Between Portfolio Manager VS Fund Manager