Understanding Import Taxation.

A kind of tax called an import duty is imposed by a country's customs authority on certain imports and exports. The amount of import duty levied is usually determined by the value of the products. Customs duty, import tax, import tariff, and tariff are other terms that are occasionally used to refer to import duty.

There are two distinct goals for the import duties:

1) Raising the local government's revenue.
2) Exhorting people to buy locally produced goods that are duty-free when imported.

Imposing hefty import duties on a nation's goods is another objective that is not particularly emphasized or disclosed.
Impact of Industry The basic customs charge on a number of goods, including shoes, refrigerators, washing machines, air conditioners, furniture fittings, jewellery, and tableware, was recently increased by India.

This action contributes to keeping the rupee's value relative to other currencies stable and managing the current account deficit. Additionally, the goal of the higher customs charge is to discourage the import of particular goods.

An increase in import duties will result in an increase in the price of the items, which will decrease demand and lower imports. In a manner, this helps the homegrown producers. Levying import duties on items is primarily done to help the country's economy, citizens, jobs, and environment.

Conclusion

When certain commodities enter the nation, import duty is gathered. Numerous international bodies, agreements, and treaties directly affect import duties.