What are preferential tariffs?

A tariff is a tax on imported or, more rarely, exported goods. It is also called a customs duty. Tariffs may be distinguished from other taxes in that their predominant purpose is not financial but economic; the intention is not to increase a nation’s revenue but to protect domestic industries from foreign competition. For that reason, protective tariffs attempt to shelter selected domestic industries by restricting the quantity and raising the price of competing imports. Revenue-producing tariffs are enacted mainly to increase government income. Some tariffs are fixed duties on a variety of imported products. However, in most cases, tariffs are ad valorem duties; that is, they are a percentage of the value of the imported products.

Sustainable Development Goals:

Industry, Innovation and Infrastructure

Peace, Justice and Strong Institutions