What is the term for a governmental tax on imports?

What is the term for a governmental tax on imports?

• A. Tariff
• B. Duty
• C. Excise
• D. Impost

Answer: (A)

A tariff is a tax specifically placed on goods as they cross a country’s border. It serves to raise government revenue and can also protect domestic industries by making imported goods more expensive. This import-focused nature is what makes tariff the correct term for a governmental tax on imports. Other terms don’t fit as precisely. A duty can be used to mean a tax on imports in some contexts, but the standard and most precise term for an import tax is tariff. An impost is an older or less common word for a tax in general, not specifically tied to imports. An excise is a tax on particular goods, typically imposed on production or sale within the country, not on goods imported from abroad.

A tariff is a tax specifically placed on goods as they cross a country’s border. It serves to raise government revenue and can also protect domestic industries by making imported goods more expensive. This import-focused nature is what makes tariff the correct term for a governmental tax on imports.

Other terms don’t fit as precisely. A duty can be used to mean a tax on imports in some contexts, but the standard and most precise term for an import tax is tariff. An impost is an older or less common word for a tax in general, not specifically tied to imports. An excise is a tax on particular goods, typically imposed on production or sale within the country, not on goods imported from abroad.