Question

'Import' means bringing goods and services from abroad for sale. In this context, what could be the possible intention behind imposing an import tax on the price of imported goods:

• A.

  to make the good relatively more expensive

• B. to deter the demand for imports
• C.

  to encourage domestic consumption

• D.

  all of the above

Answer 1

The correct option is D

all of the above

Import duty is levied a) to make the good relatively more expensive; b) to deter the demand for imports; and c) to encourage domestic consumption.