Per-Unit Tax

Definition

A per-unit tax is a tax imposed on each unit of a good or service produced or consumed. It is typically levied by the government as a way to generate revenue or discourage consumption.

Related terms

Tax Incidence: Tax incidence refers to how the burden of a tax is distributed between buyers and sellers in a market.

Deadweight Loss: Deadweight loss represents the inefficiency and loss of economic welfare that occurs when resources are not allocated optimally due to market distortions like taxes.

Tax Revenue: Tax revenue is the total amount of money collected by the government from taxes imposed on individuals, businesses, or goods/services.