What is difference between the Tariff and tax SolutionDiffer

What is difference between the Tariff and tax

Solution

Difference between Tax and Tariff:-

Tax is a compulsory payment made by an individual, household or a firm to the government without reference to anything in return. In other words, Tax is a legally compulsory payment imposed on the people by the government.

Tariff is a tax imposed on imported goods and services. They are to increase the price of imported goods and services and thereby restrict the trade.

Conclusion:- Taxes are collected internally whereas Tariffs are collected on import of goods and services.