Economics A Level: What are the 2 Types of Indirect Taxes?

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What are the 2 Types of Indirect Taxes?

go kys · Accepted Answer

-Specific Taxes: Fixed Amount that will be Charged per Unit of a Good. Doesn't care for the Price of the Good. 
-Ad Valorem Taxes: Charged as a Proportion [%] of the Price of a Good. So a 20% Tax on the Price of a God means, if its $10 Product, its $2 Tax, and if its $100, it is now $20

Economics A Level

What are the 2 Types of Indirect Taxes?

-Specific Taxes: Fixed Amount that will be Charged per Unit of a Good. Doesn't care for the Price of the Good. -Ad Valorem Taxes: Charged as a Proportion [%] of the Price of a Good. So a 20% Tax on the Price of a God means, if its $10 Product, its $2 Tax, and if its $100, it is now $20

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