A country’s economy depends on its GDPA, where the global economy runs on trade. This trade between two entities are carried out in such a way that both are profited.
Before getting into the matter, let’s make sure ‘what the tariff is’
Tariff—an imposed duty or tax by the government on the imported as well as exported goods; tariffs imposed on exports are very rare to witness. Domestic manufacturers are benefited out of import tariffs, as they don’t have to pay for it. Whereas, foreign marketers have to pay import duty in order to trade in the other countries, which further results into a raise in the prices of foreign goods in domestic market. These tariffs are further cumulatively supplied to the government for public welfare.
Tariffs were paid according to its categorization in three types, as per the duty:
Specific Duty—the duty doesn’t vary with the variations in the prices of goods. A fixed amount of money is decided for per unit which could be kilograms, mostly quantifiable. Such specific duties were imposed initially on 36 types of different goods, mainly including beer, wine, salt, sugar, tea and tobacco, in terms of fixed percentage of value. Continue Reading...
