. Customs taxes are imposed on exports to protect our natural resources from leaving the...

. Customs taxes are imposed on exports to protect our natural resources from leaving the country. Also, some states tax natural resources, and some countries restrict and tax the amount of natural resources leaving their country.

True/ False

If, it is false .Why?

Solutions

Expert Solution

Custom taxes are imposed on goods crossing borders of the country whether it be natural resources or any other item. These taxes are imposed firstly, to generate revenue to the government and secondly to provide resources to the host country where that product is required and you have abundant of that for your own country.

Therefore excess of the resources are exported and charged custom taxes on that.

As far as natural resources are concerned, they are exported when the country has abundant of the resources and the country importing the resources lack those resources, thus they pay extra charge or custom tax to use the other country's resources.

Therefore the statement given for custom tax for natural resources is false

Custom taxis levied to make the foreign goods less desirable over domestic goods and to safeguard the interest of domestic market as well as to generate additional revenue.

ekkarill92 answered 1 year ago

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