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Specific Tax is a tax imposed:
On specific commodities like liquor, tobacco etc. to discourage their consumption
For a specific period of time after which it is withdrawn
On commodities imported from specific nations
On the basis of specific attribute of a commodity like weight, size, quantity, rather than value
4th statement is correct. A per unit tax, or specific tax, is a tax that is defined as a fixed amount for each unit of a good or service sold, such as cents per kilogram. It is thus proportional to the particular quantity of a product sold, regardless of its price.
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