What is difference between the Tariff and tax Solution Difference between Tax and Tariff:- Tax is a compulsory payment made by an individual, household or a firm to the government without reference to anything in return. In other words, Tax is a legally compulsory payment imposed on the people by the government. Tariff is a tax imposed on imported goods and services. They are to increase the price of imported goods and services and thereby restrict the trade. Conclusion:-Taxes are collected internally whereas Tariffs are collected on import of goods and services..