1 Specific duty is a method of tariff calculation based on the unit of measurement such as the quantity, volume and weight of goods.

2. Ad valorem tax refers to taxes levied according to the price of goods, and its tax rate is a certain percentage of the price of goods.

Second, the advantages are different

1, advantages of specific tax

It can avoid the influence of price changes on tax revenue and maintain the stability of tax revenue;

It is helpful for macro departments to use tax leverage to adjust resources, environment and import and export. The disadvantage is that during the period of rising prices, the tax revenue can't increase with the sales of goods.

2. Advantages of ad valorem tax

The collection of ad valorem tax is relatively simple, and it is not necessary to classify the same kind of goods in detail because of their different qualities.

The tax rate is clear, which is convenient to compare the tax rates of various countries.

The tax burden is fairer. Because the amount of ad valorem tax increases or decreases with the price and quality of goods, it is more in line with the principle of tax fairness.

When the tax rate remains unchanged, the tax amount will increase with the increase of commodity prices, which will not only increase fiscal revenue, but also protect tariffs.

Third, the calculation formula is different

1, the formula for calculating the specific tax amount is: tax amount = quantity of goods × specific tax per unit?

2. The formula for calculating the ad valorem tax is: tax amount = total value of goods × ad valorem tax rate.

Four, the tax content is different.

1, Specific tax: Specific tax is applied to some tariffs, resource tax, consumption tax, vehicle and vessel tax and salt tax.

2. Ad valorem tax: Most taxes in the People's Republic of China, such as product tax, value-added tax, business tax, property tax and customs duties, are ad valorem taxes.

Five, the shortcomings are different

1, disadvantages of specific tax

The tax burden of goods that cannot distinguish between grades, quality and price differences is unreasonable;

The tax rate is fixed and inflexible, and the tax amount cannot increase or decrease with the price fluctuation, thus losing the price function of the market.

It is not applicable to some commodities that cannot be calculated by quantity, such as antiques, calligraphy and painting, clocks and watches, diamonds, etc. Specific duty is usually used to deal with foreign imports of cheap goods with low quality. The specific tax used in developed countries is mainly aimed at the import of food, beverages, animal and vegetable oils, etc. Since developing countries mainly export primary products, specific tax makes the tax burden of such products relatively heavy.

2. shortcomings of ad valorem tax,

Higher prices and higher taxes are not conducive to improving commodity packaging;

Determining and calculating the price and amount of ad valorem tax is complicated in both methods and procedures, which adds certain difficulties to taxpayers and tax authorities and is prone to disputes.

Baidu Encyclopedia-Specific Tax

Baidu Encyclopedia-Ad valorem Tax