Per Unit Tax

A Per Unit Tax is a tax based on a fixed amount for each unit sold.

• AKA: Specific Tax.
• Example(s):
  • $0.05 per kilogram
• Counter-Example(s):
  • an ad valorem Tax.
• See: ad Valorem, Tax, Excise.

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References

2016

• (Wikipedia, 2016) ⇒ https://en.wikipedia.org/wiki/per_unit_tax Retrieved:2016-9-28.
  • A per unit tax, or specific tax, is a tax that is defined as a fixed amount for each unit of a good or service sold, such as cents per kilogram. It is thus proportional to the particular quantity of a product sold, regardless of its price. Excise taxes, for instance, fall into this tax category. By contrast, an ad valorem tax is a charge based on a fixed percentage of the product value. Per unit taxes have administrative advantages when it is easy to measure quantities of the product or service being sold.

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