The duty paid on goods produced locally is known as excise duty. This is a tax imposed by the government on certain goods that are manufactured or produced within a country.
Excise duty is charged at the production or manufacturing stage, and it is different from other forms of duties, such as import or export duties. It is specifically levied on goods that are produced domestically, rather than on goods that are imported or exported.
The purpose of imposing excise duty is to generate revenue for the government and to regulate the production and consumption of certain goods. The amount of excise duty can vary depending on the type of goods and the specific regulations set by the government.
Unlike export duty, which is imposed on goods that are being sent out of the country, excise duty is levied on goods that are produced within the country and are intended for consumption or sale within the domestic market.
It is important to note that excise duty is not the same as ad-valorem duty, which is a percentage-based duty imposed on the value of goods. Excise duty is specifically tied to the production or manufacturing of goods.
Furthermore, excise duty should not be confused with quota. Quota refers to a limit or restriction on the quantity of goods that can be imported or exported from a country. It is not directly related to the payment of duties on locally produced goods.
In summary, the duty paid on goods produced locally is called excise duty, which is a tax imposed by the government on certain goods that are manufactured or produced within the country.