Which term denotes a tax on imported goods?

Which term denotes a tax on imported goods?

• A. Tariff
• B. Income Tax
• C. Sales Tax
• D. Excise Tax

Answer: (A)

A tax on imported goods is called a tariff. Tariffs are charges imposed by a country on goods that cross its border, usually to raise revenue or to protect domestic industries by making imports more expensive. This differs from an income tax, which targets earnings; a sales tax, which is charged on goods sold inside the country; and an excise tax, which is a tax on specific goods produced or sold domestically. Tariffs can shift prices for consumers and influence trade by changing the relative cost of foreign versus domestic products.

A tax on imported goods is called a tariff. Tariffs are charges imposed by a country on goods that cross its border, usually to raise revenue or to protect domestic industries by making imports more expensive. This differs from an income tax, which targets earnings; a sales tax, which is charged on goods sold inside the country; and an excise tax, which is a tax on specific goods produced or sold domestically. Tariffs can shift prices for consumers and influence trade by changing the relative cost of foreign versus domestic products.