Lesson Plan

• Describe why governments use trade taxes to raise revenue.
• Explain how specific and ad‑valorem tariffs generate revenue.
• Calculate revenue from a specific tariff and an ad‑valorem tariff.
• Analyse the advantages and disadvantages of raising revenue through trade taxes.
• Evaluate how tariff revenue can be allocated to public services.

• Projector or interactive whiteboard
• Slide deck summarising tariff types and formulas
• Worksheet with tariff calculation problems
• Calculator or spreadsheet software
• Handout of advantages/disadvantages table
• Whiteboard and markers

Begin with a quick poll: “What taxes do you notice when you buy imported goods?” Connect this to students’ prior knowledge of domestic taxes and set the success criteria: students will be able to explain how trade taxes raise government revenue and calculate the amounts.

1. Do‑now (5') – Quiz on different types of taxes to activate prior knowledge.
2. Mini‑lecture (10') – Explain why governments use trade taxes for revenue, introduce specific and ad‑valorem tariffs with examples.
3. Guided practice (12') – Students work in pairs on worksheet calculations: R = t × Q and R = r × V.
4. Class discussion (8') – Analyse advantages and disadvantages; relate to real‑world cases.
5. Diagram activity (5') – Label a flow‑chart showing tariff collection at the border and transfer to the treasury.
6. Exit ticket (5') – Write one advantage and one disadvantage of using trade taxes for revenue.

Summarise the key points: trade taxes broaden the tax base, are easy to collect, and provide stable revenue, but they can raise prices and provoke retaliation. Collect exit tickets and assign a homework task to research a country’s tariff revenue and prepare a brief report on its allocation.