Gaurav & Limited Company is an Indian Company. The Company wishes to import high-quality Televisions from Japan but have to pay a huge import tax on them which would make the Televisions very expensive leading to a decline in their sales. Ascertain the role of the import tax in this situation.
[1 mark]
The Import tax is acting as a Foreign Exchange Management Regulation.
The Import tax is acting as a Trade Barrier.
The Import tax is acting as a Foreign Exchange Regulation
The Import tax is acting as a Business Regulation
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The role of import tax in this situation is acting as a trade barrier.
Trade barrier refers to the imposition of tax on the import of goods from foreign countries. The Indian government has put barriers to foreign trade and foreign investment after independence.
The objectives were :
1. To protect the domestic producers from the following competition.
2. To provide opportunity to new industries to develop their position in the market.
3. To control the quantity of imports in the country.
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