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welcome to another in our series of uh key diagram videos well look at key topics on the level syllabus and just work through the diagrams that will really help to get you top analysis marks in this video well take a look at specific and ad valorem taxes now its very important to be able to just explain and analyze the difference between a specific and an ad an ad volume tax obviously theyre both forms of intervention by governments theyre both indirect taxes on suppliers the consequences for price and output are similar but please be prepared to develop the diagram to show the effect of an indirect tax on stakeholders such as consumers producers and also the government and try to bring in welfare concepts such as consumer and producer surplus to help your analysis so sugar tax is a good example of a specific tax its a standard rate per liter 18p in the uk per liter and thats applied to all drinks with a sugar content of between five grams and eight grams per hundred milliliter