Merits and demerits of custom duty
Raviteja (Articleship) (165 Points)
28 May 2012
Can any one tell me the merits and demerits of custom duty. Urgent needed.
Thanks in advance.
Prachi Bansal
(3124 Points)
Replied 25 April 2021
Merits/advantages:-
1. Increases the government revenue 2. Safeguards the domestic market from intense foreign competition. 3. Protects consumers from degraded/unhealthy goods.
Demerits /disadvantages:-
1. The tax burden on the importer/exporter 2. Consumer choices get limited due to high custom duty hence reducing the standard of living 3. Additional charges with the custom duty
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