Tariff

A tariff is a tax placed on imported and/or exported goods. The goal is to encourage consumption of domestically produced goods (which do not have the extra cost) and raise revenue. Tariffs are similar to tolls, which have the same kind of effect on the transport of people across borders instead of goods. Tax, tariff and trade rules in modern times are usually set together because of their common impact on industrial policy, investment policy and agricultural policy. A trade bloc generally has no tariffs within its borders but may have very high "tariff barriers" against imported goods or services. There are also non-tariff barriers such as immigration policy.

See also

Tariff is also a schedule of prices as in an electricity tariff published by an electricity utility or electricity retailer. This would typically list the prices (or rates) for various services or components of the service such as: the service charge, time of use energy (kWh) charges and, for demand, (kW) charges.

The origin of the term can be traced back to the operation of pirates in the Mediterranean near the island of Tenerife, which is the largest of the Canary Islands. Apparently, these pirates had a schedule of prices which they levied on ships that wanted to make passage in the waters around their island. Hence the imposition of a tariff.

A Tariff is also a recommendation for the length of a prison sentence to be served, before the prisoner is eligible for parole.