Duty vs Tariff
“Duty” and “tariff” are both forms of taxes imposed by the government on goods which are imported from some other country. A tariff helps protect the domestic industries in the market of a country by restricting the amount of goods traded and generates revenue for the government. A duty is an indirect tax which is again imposed by the government of a country to protect the domestic industries and also generates revenue. They are basically like a consumer tax on goods imported from other nations. The two words are sometimes used interchangeably. When a government and the economy are mentioned, the word “tariff” is more appropriately used, and when the rates are discussed and an amount mentioned, then the words used are “duty” or “custom duty.” The term “duty” also refers to the custom duty imposed on the goods of a single person bringing in something from another country as a personal usage item.
There are different words used in reference to a duty. A custom duty is considered an indirect tax imposed by the government of a nation on goods imported during international trade. It is another popular word for “tariff” and refers to list of commodities along with their rates. An import duty is the duty which is levied by a government on goods which are imported. An export duty refers to duties levied by the government on export goods. A duty is also seen as a consumption tax because it is imposed by the government on consumers.
A tariff is defined as a form of duty or tax levied on goods for protective purposes and revenue purposes when they are transported from one customs area to another. It is also defined as a comprehensive list or schedule of merchandise or goods along with their prices which need to be paid for each item according to the regulations and rules of the government.
Tariffs are considered the amount which needs to be paid by a nation for trading products, exports or imports. The price of the goods being traded always increases in case of tariffs being imposed on the products. Custom duties are the collected income from tariff taxes.
Tariffs are useful for a nation as they help in earning revenue for the government and also help in raising the country’s GDP. With the help of protective tariffs, the underdeveloped and noncompetitive domestic industries of a country receive encouragement and incentives to compete. It also helps in controlling trade between two nations.
Tariffs are seldom imposed on export goods and mostly imposed on imported goods. They are consumer taxes thus always costing extra money to the consumer. Tariffs are restrictions used to control foreign products entering the domestic market of a country.
“Tariff” is defined as a form of duty or tax levied on goods for protective purposes and revenue purposes when they are transported from one customs area to another while custom duties are the collected income from tariff taxes.