Question

The tax on import and export is known as

  1. Income Tax
  2. Trade Tax
  3. Custom Duty
  4. None of the above

Answer:

Option C: Custom Duty

Detailed Solution:

The correct answer is “Custom Duty ”.

Custom duty, also known as customs duty, is a tariff or tax imposed on goods when they are transported across international borders. It is levied by the customs authority of a country to raise revenue and/or protect domestic industries from foreign competition.