What is the Difference Between Excise Duty and Custom Duty?
🆚 Go to Comparative Table 🆚The main difference between excise duty and custom duty is that excise duty is imposed on goods produced domestically, while custom duty is levied on goods imported into a country. Here are the key differences between the two:
- Imposed on: Excise duty is imposed on goods and services produced within a country, while customs duty is levied on imported goods at the point of entry into a country.
- Payment: Manufacturers or producers pay excise duty, while importers pay custom duty when bringing goods into a country.
- Calculation: Excise duty is calculated based on the quantity or value of domestically produced goods, while custom duty is calculated based on the value of imported goods and their classification.
- Examples: Excise duties are typically applied to a narrow range of products, such as alcohol, tobacco, motor fuel, and betting. Customs duties, on the other hand, are applied to a wide variety of imported goods.
In summary, excise duty is an inland tax applied to domestically produced goods, while custom duty is a levy on imported goods at the point of entry into a country.
Comparative Table: Excise Duty vs Custom Duty
Here is a table comparing the differences between excise duty and custom duty:
| Excise Duty | Custom Duty |
|---|---|
| Imposed on goods and services produced domestically | Imposed on goods imported into a country |
| Primarily applicable to goods such as alcohol, tobacco, fuel, and services like gambling | Mostly applicable to goods such as alcohol, tobacco, fuel, and services like gambling |
| Calculated based on the quantity or value of domestically produced goods | Calculated based on the value of imported goods and their classification |
| Manufacturers or producers pay excise duty | Importers pay custom duty when bringing goods into a country |
| Main purpose is to reduce the consumption of certain products that may have a harmful effect on humans | Main purpose is to regulate international trade, protect domestic industries, and generate revenue for the government |
Excise duty is an inland tax applied to specific goods produced domestically, while custom duty is levied on goods imported into a country. Excise duty is calculated based on the quantity or value of domestically produced goods, and manufacturers or producers pay it. On the other hand, custom duty is calculated based on the value of imported goods and their classification, and importers pay it when bringing goods into a country.
- Excise Duty vs Sales Tax
- Excise vs VAT
- Duty vs Tax
- Duty vs Tariff
- Import vs Export
- Customs vs Traditions
- VAT vs Sales Tax
- Export Price vs Domestic Price
- Invoice vs Tax Invoice
- Tariff vs Quota
- Direct Tax vs Indirect Tax
- Obligation vs Duty
- Exemption vs Deduction
- Duties vs Responsibilities
- Tax vs Levy
- Exemption vs Exception
- Freight vs Shipping
- Smuggling vs Trafficking
- Exempt vs Zero Rated (VAT)