Tax vs. Tariff

By Jaxson

Main Difference

The main difference between Tax and Tariff is that the Tax is a method to impose financial charge or other levy upon a taxpayer by a government or functional equivalent and Tariff is a tax on the import and export of goods.

  • Tax

    A tax (from the Latin taxo) is a mandatory financial charge or some other type of levy imposed upon a taxpayer (an individual or other legal entity) by a governmental organization in order to fund various public expenditures. A failure to pay, or evasion of or resistance to taxation, is punishable by law. Taxes consist of direct or indirect taxes and may be paid in money or as its labour equivalent. Most countries have a tax system in place to pay for public/common/agreed national needs and government functions: some levy a flat percentage rate of taxation on personal annual income, some on a scale based on annual income amounts, and some countries impose almost no taxation at all, or a very low tax rate for a certain area of taxation. Some countries charge a tax both on corporate income and dividends; this is often referred to as double taxation as the individual shareholder(s) receiving this payment from the company will also be levied some tax on that personal income.

  • Tariff

    A tariff is a tax on imports or exports between sovereign states.

    In other languages and very occasionally in English, tariff or its cognates may also be used to describe any list of prices (e.g., electrical tariff). This article discusses the preceding meaning.

  • Tax (noun)

    Money paid to the government other than for transaction-specific goods and services.

  • Tax (noun)

    A burdensome demand.

    “a heavy tax on time or health”

  • Tax (noun)

    A task exacted from one who is under control; a contribution or service, the rendering of which is imposed upon a subject.

  • Tax (noun)

    charge; censure

  • Tax (noun)

    A lesson to be learned.

  • Tax (verb)

    To impose and collect a tax from (a person).

    “Some think to tax the wealthy is the fairest.”

  • Tax (verb)

    To impose and collect a tax on (something).

    “Some think to tax wealth is destructive of a private sector.”

  • Tax (verb)

    To make excessive demands on.

  • Tariff (noun)

    A system of government-imposed duties levied on imported or exported goods; a list of such duties, or the duties themselves.

  • Tariff (noun)

    A schedule of rates, fees or prices.

  • Tariff (noun)

    A sentence determined according to a scale of standard penalties for certain categories of crime.

  • Tariff (verb)

    to levy a duty on (something)

  • Tax (noun)

    a compulsory contribution to state revenue, levied by the government on workers’ income and business profits, or added to the cost of some goods, services, and transactions

    “a tax bill”

    “higher taxes will dampen consumer spending”

    “a tax on fuel”

    “tax cuts”

    “they will have to pay tax on interest earned by savings”

  • Tax (noun)

    a strain or heavy demand

    “a heavy tax on the reader’s attention”

  • Tax (verb)

    impose a tax on (someone or something)

    “the income will be taxed at the top rate”

  • Tax (verb)

    pay tax on (something, especially a vehicle)

    “the Land Rover slowly disintegrates and no one has bothered to tax it”

  • Tax (verb)

    make heavy demands on (someone’s powers or resources)

    “she knew that the ordeal to come must tax all her strength”

  • Tax (verb)

    confront (someone) with a fault or wrongdoing

    “why are you taxing me with these preposterous allegations?”

  • Tax (verb)

    examine and assess (the costs of a case)

    “an officer taxing a bill of costs”

Oxford Dictionary

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