Question

a group of companies in India wishes to import high quality ACs from south Korea but have to pay a huge import tax on them which would make the ACs very expensive leading to a decline their sale.Ascertain the role of the import tax in this situation

Answer 1

due to high tax rate india will earn more profit. which would be helpful in more gdp earning on other hand due to heavy import tax and decline sale company may leave import which would result in decline in ratio of profir