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Duty (economics)




In Economics , a duty is a kind of Tax , often associated with Customs , a payment due to the revenue of a state, levied by force of law. Properly, a duty differs from a tax in being levied on specific Commodities , Financial Transaction s, Estates , etc., and not on individuals; thus it is right to talk of Import duties, Excise duties, Death or Succession duties, etc., but not of Income Tax as being levied on a person in proportion to his income.

Duty-free is the term that is often used to describe goods bought at Port s and Airport s that do not attract the usual government taxes and customs duties.

Some countries impose Allowance s in order to restrict the number of Duty-free items that one person can Import into the country. These restrictions often apply to Tobacco , Wine , Spirits , Eau De Toilette , Gifts and Souvenir s.

But in some entities, such as Hong Kong , "duty free" becomes meaningless as they do not impose any sales tax or custom duty on any goods except tobacco and Alcohol .

A Tariff is a tax on foreign goods upon importation. Duties and tariffs are both forms of taxation.


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