Consumption tax is the duty that is levied when you purchase a good or service. They can be taxes on sales, excise, or tariffs. A consumption tax can also be used to refer to a whole system of taxation. In this system, taxation is determined by consumption instead of what is added to the economy. Taxes on gross business receipts, VAT, retail taxes, gross business receipts taxes, excise taxes, and import duties are some of the renowned examples of consumption taxes.
Alternative Minimum Tax
An alternative minimum tax is a method that is used to compute the least amount that a person is obligated to pay as tax, based on their income. This approach was formulated to make sure that fairness reigns in a taxation system. Alternative minimum tax warrants that high-income earners pay their fair share of taxes regardless of the deductions and incentives.
Customs duties are the taxes that are imposed on import and export goods. Custom duties strengthen the economic stability of a country and control the products that are making their way in and out of the country. Also, it helps governments restrict certain goods. Custom duty can be classified as anti-dumping duty, basic customs duty, protective duty, special Countervailing duty, etc.
Excise taxes are duties that are imposed on particular goods and services that are considered harmful. Some of the examples of such goods include alcoholic beverages, cigarettes, and fuel. It is not the customers who pay this tax. Instead, the government usually levy excise duties on the producers and suppliers of the product. It is the owners of these products who include the taxes in the prices of the goods. Excise taxes are often imposed in two ways, per unit tax and percentage of the price.