Duty vs Tax
The government has many sources of income for taking on developmental works. Duty and tax are the sources of income for a government that helps in many social and developmental works like imparting education, health and security.
Duty known as a tax levied on goods that are imported from another nation and also manufactured in the country. It is also noted that duty is only levied on produce and not on individuals. The duty that is levied for goods manufactured inside the state is called an excise duty. And the duty that is levied on goods imported from a foreign country is the customs duty. Then there is the export duty, which is imposed on goods that are exported from the country.
Taxes are binding and not voluntary. This means that an individual is bound to pay tax and in failing to do so, is punishable. Taxes come as direct and indirect tax. For example, income tax is a direct tax and VAT is an indirect tax. There are various taxes like income tax, wealth tax, property tax and many more.
Duty and tax differ in the sense that the former one is applied only on financial transactions, commodities, estates and the like, where the latter is mainly levied on both goods and individuals.
Duties are generally inputs and are tagged with a “cost” perspective. On the other hand, taxes generally are inputs and are tagged on an “income or value” perspective.
Summary
1. Duty and tax are the sources of income for a government that helps in many social and developmental works, like imparting education, health and security.
2. Duty is a tax levied on goods that are imported from another nation and also manufactured in the country.
3. The duty that is levied for goods manufactured inside the state is called excise duty. And the duty that is levied on goods imported from a foreign country is the customs duty.
4. Duty and tax differs in the sense that the former one is implied only on financial transactions, commodities, estates and the like, where the latter is mainly levied on both goods and individuals.
5. Duties are generally inputs and are tagged with a “cost” perspective. On the other hand, taxes generally are inputs and are tagged on an “income or value” perspective.