If the pound, dollar,and Euro end up nearly the same, what is the point of import tax?. ie if we tax them,then they tax us.?

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  • 4 months ago

    To collect money from the importer.

  • 4 months ago

    Taxes have nothing to do with exchange rates. Taxes are intended to do one of two things:

    1. Raise revenue.

    2. Alter behavior - encourage some activities and discourage others.

  • Amy
    Lv 7
    4 months ago

    There is no point to imposing tariffs between countries with similar economies, such as the UK, US, and EU.

    However, an import tax can make up for unfair competition between dissimilar countries.

    For example, goods can be manufactured cheaply in China because they pay low wages and have few restrictions on pollution. An import tax raises the price on those goods to be comparable to the same goods produced more ethically in developed countries.

  • geezer
    Lv 7
    4 months ago

    Import Tax has got nothing to do with Exchange Rates.

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  • Anonymous
    4 months ago

    Work through the numbers.

  • 4 months ago

    Import taxes are imposed on China because China imposes import taxes to protect their economy from foreign goods. China also engages in intellectual theft (patent-protected theft) and sale of impure drugs.

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