Assume that 15% specific tariff is levied by the government on every sunglasswhich is imported into
India,andif 2000sunglassesare importedandpriceofeachsunglassisRs.1000/-,thenfind out the
amount of total tariff revenue collected by the government?
harsh satijaBeginner
international eco
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Specific Tariff is levied per unit of Commodity. Here, the Tariff collection will be – 2000 * 15% = Rs.300
But why 2000*1000*30% should not be there
If you do this, then the Import Duty is levied on the value of Imports. This type of Import Duty is called Ad-Valorem Tariff.
Specific Tariff is only levied on the number of units irrespective of their value.