Statistical Terms Glossary

Commitment not to increase a rate of duty beyond an agreed level. Once a rate of duty is bound, it may not be raised without compensating the affected parties.

Higher import duties on semi-processed products than on raw materials, and higher still on finished products.
This practice protects domestic processing industries and discourages the development of processing activity in the countries where raw materials originate.

Relatively high tariffs, usually on “sensitive” products, amidst generally low tariff levels. For industrialized countries, tariffs of 15% and above are generally recognized as “tariff peaks”.

A tariff quota is a quantitative threshold (quota) on imports above which a higher tariff is applied. The lower tariff rate applies to imports within the quota

A measure of the degree of tariff rate dispersion. It is typically defined as those tariff rates that exceed a certain threshold value usually taken to be three times the overall simple bound rate, or above 15 per cent.

1. A process that converts non-tariff barriers into tariffs, which are considered to be more transparent than non-tariff barriers and are subject to negotiation downwards. It does not apply to primary agricultural products unless they are designated as subject to special conditions.; 2. At the Uruguay Round, all non-tariff barriers to trade in agriculture were converted into tariffs in a process known as “tariffication”. The resulting tariff amounts were set as ceilings above which tariffs could not henceforth be set. Rules were then created to push all members in the direction of ultimate elimination of agricultural tariffs. Industrialized countries were expected to lower tariffs on agricultural imports by an average of 36% between 1995 and 2000, and each tariff was to be reduced by at least 15%. Developing countries were mandated to reduce agricultural tariffs by an average of 24% between 1995-2004, with each tariff being reduced by at least 10%.; 3. Procedures relating to the agricultural market-access negotiations in which all non-tariff measures are converted into tariffs.

The tariff-rate quota resulted from the Uruguay Round Agreement on Agriculture. Certain countries agreed to provide minimum import opportunities for products previously protected by non-tariff barriers.
This import system established a quota and a two-tier tariff regime for affected commodities. Imports within the quota enter at a lower (in-quota) tariff rate while a higher (out- of-quota) tariff rate is used for imports above the concessionary access level.

Amounts deducted from gross earnings to arrive at taxable income.

Taxes due to government but not paid. Other arrears in receipts could arise from non-payment of loans by government or nonpayment of bills for government services.

Total elasticity of the tax system (built-in elasticity plus elasticity due to discretionary changes in the tax system). Measured by the annual mean growth in receipts divided by the annual mean growth in gross domestic product (GDP).

A 100% offset against tax liability.

Amounts which a taxpayer may subtract from his tax liability. They are described as payable if they can exceed tax liability (sometimes the terms “refundable” and “non-wastable” are used).

A tax on a product is a tax that is payable per unit of some good or service, either as a specified amount of money per unit of quantity or as a specified percentage of the price per unit or value of the good or service transacted.

A generic term to cover all the means of giving favourable income tax treatment to employees, married couples and parents.

Sum of personal income tax and employee plus employer social security contributions together with any payroll tax less cash transfers, expressed as a percentage of labour costs.

Short-term borrowing issued to fill temporary financing needs. It is backed by anticipated tax receipts and any unencumbered revenue of the community.

Taxes are compulsory, unrequited payments, in cash or in kind, made by institutional units to government units; they are described as unrequited because the government provides nothing in return to the individual unit making the payment, although governments may use the funds raised in taxes to provide goods or services to other units, either individually or collectively, or to the community as a whole.

Taxes (recurrent) on land, buildings or other structures consist of taxes payable regularly, usually each year, in respect of the use or ownership of land, buildings or other structures utilised by enterprises in production, whether the enterprises own or rent such assets.

Taxes and duties on imports, excluding value added tax, consist of taxes on goods and services that become payable at the moment when the goods cross the national or customs frontiers of the economic territory or when the services are delivered by non-resident producers to resident institutional units.

Taxes on capital gains consist of taxes on the capital gains (described as holding gains in the System of National Accounts terminology) of persons or corporations which become due for payment during the current accounting period, irrespective of the periods over which the gains have accrued.

Taxes on capital transfers consist of taxes on the values of assets transferred between institutional units.

Taxes on entertainment consist of any taxes which are levied specifically on the entertainment itself (such as on an entry ticket) and which are not part of some broader tax such as a value added tax.

Taxes on financial and capital transactions consist of taxes payable on the purchase or sale of non-financial and financial assets including foreign exchange.

Taxes on income consist of taxes on incomes, profits and capital gains; they are assessed on the actual or presumed incomes of individuals, households, non-profit institutions or corporations.

Taxes on individual or household income consist of personal income taxes, including those deducted by employers (pay-as-you-earn taxes), and surtaxes