What is Tarrif? Check Out Kinds Of Tarrif In India!
By Jasreet Kaur31, Mar 2025 04:00 PMjagranjosh.com
Do you know?
Tariffs are taxes on imports. India uses them to protect local businesses and earn revenue. They make foreign goods costlier and support economic growth. Tap to read in detail.
What is a Tariff?
A tariff is a tax on imported or exported goods. The government uses tariffs to control trade. It helps local businesses compete with foreign products.
Ad Valorem and Specific Tariffs
An ad valorem tariff is based on the product’s price. A specific tariff is a fixed amount per unit. Both make imports more expensive.
Protective and Revenue Tariffs
A protective tariff makes imports costlier to help local industries. A revenue tariff collects money for the government. Both affect the price of goods.
Prohibitive Tariffs
A retaliatory tariff is used to punish unfair trade practices. A prohibitive tariff is very high. It stops the import of certain products completely.
Environmental and Compound Tariffs
An environmental tariff discourages polluting goods. It helps protect nature. A compound tariff combines two types of taxes. It makes import costs more complex.
Reasons Governments Impose Tariffs
Tariffs protect local industries from competition. They help businesses grow. Governments also use tariffs to collect money, reduce imports, and keep jobs in the country.