By Admin 
Difference between tariff and tax: America’s huge tariff of 50 percent imposed on India has come into force from today. First the US had imposed a baseline tariff of 25 percent and then 25 percent and tariffs were imposed for the purchase of oil from Russia. That is, now tariffs will be charged up to 50 percent on imports in Indian goods in America.
Usually people are confused about tax and tariffs because both words have often been used in place of each other. However, there is a difference between the two. The biggest difference between them is that tax person or any company pays the government on the basis of its income, while tariffs are imposed on imports.
What is tax imposing tax?
This is a compulsory share of its earnings to the government by a company, institute or person. There are many types of taxes, which are used for schools, roads, medicines and other basic care. In income tax, individuals pay some part of their earnings to the government as tax. Individuals with more earning more and low income pay less taxes. Similarly, under the corporate tax, companies pay tax to the government according to their profits.
Their rates are different in different countries and states. Similarly, the tax imposed on goods at the time of sale is known as sales tax, tax imposed on property and property tax. Overall, tax is levied on the earnings and purchases made inside the country. The government uses the money received as tax for the development of the country.
What is tariff?
Tariffs imposed on goods and services imported from one country to other countries are called tariffs. That is, the tax imposed on the goods called from abroad is called tariff. Its purpose is to encourage the consumption of domestic things. Since tariffs will make foreign goods expensive. In such a situation, people will use things made in the country more and more. There are two types of tariffs-Specific Tariff and Ad-Valorem tariff.
Specific tariff In every unit (eg per kg, per liter), a fixed amount of tax is charged like Rs 10 per kg of rice.
Ad-Valorem tariff The tax is imposed on the basis of the total price of the total price of the goods, that is, the more it will be as expensive, the more the tariff will be.
Of course, the purpose of tariff is to protect the industries of our country from foreign cheap goods. Apart from this, the government’s revenue also increases with tariffs. Along with all this, tariffs are sometimes used to put pressure on other countries.
Also read:
Fear of loss of profit to job … Trump’s tariff can cause destruction in these sectors of the country