Import tax
Also called customs duties or import duties
Import tax, also known as customs duty, is a tax on products imported from other countries. This tax is calculated as a percentage of the value of the goods. The purpose of import taxes is to protect local businesses by making foreign products more expensive. The amount of this tax varies by product and country of origin.
For companies sourcing products from other countries, it is important to be well aware of these taxes to avoid additional costs. There may also be special rules that reduce or eliminate some taxes, depending on trade agreements.
Role of import tax for government
In addition, import taxes play an important role in a country's economy by generating additional revenue for the government. This revenue can be used for public services and projects. Importers should also be mindful of any changes in tax policy, as governments can adjust these rates. Understanding import taxes helps companies operate more efficiently and effectively in international trade.