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.?
- Max HooplaLv 73 months ago
To collect money from the importer.
- curtisports2Lv 73 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.
- AmyLv 73 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.
- geezerLv 73 months ago
Import Tax has got nothing to do with Exchange Rates.
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- Anonymous3 months ago
Work through the numbers.
- 3 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.