1.6 Types of tariffs
Definition of Tariffs
A tariff is a type of tax levied by a country at the border on an imported good. Tariffs have historically been used by governments to collect revenue, but they are also used to protect domestic producers. Tariffs, as a protectionist tool, raise import prices. As a result, consumers would opt for the less expensive domestic goods instead.
The different types of Tariffs
- Telephone tariffs (e.g. cell phone and fixed line)
- Municipal tariffs (e.g. electricity; water; sewage)
- Transport tariffs (e.g. bus, taxi and train tariffs)
- Bank fees.
- Telephone tariffs differ from one network to another one. The rates are charged either per minute or per second. Promotional tariffs are different, this includes various packages which promotes calling the same network. The rates are different during peak hours and off-peak hours.
- Electricity tariffs are charged per unit used. It also depends on the peak and off peak hours. The
rates of metered electricity and prepaid are different. Free units are given. - Water tariffs are charged per kiloliter used, there are free kiloliters given and there after different
rates are charged. The more water you use, the higher the cost. - Transport tariffs depend on the rates charged by service provider. Distance is used to charge the
tariffs. Regular users are discounted. Distance chart may be used to determine the cost if the rates
are charged per kilometre.