Per unit tax (Indirect tax)

A per unit tax, or specific tax, is a tax that is defined as a fixed amount for each unit of a good or service sold, such as cents per kilogram.

The imposition or raise (removal or reduction) of a unit tax on the suppliers of a good will raise (lower) the production costs of the good will lead to decrease (increase) in the supply of the good.

The tax burden of per unit tax can be shifted to the buyers by raising the selling price of a good. (indirect tax)

The calculation of a per unit tax does not related to the buyer's income, and it must be a kind of <regressive tax>.