Export duty

Tax Glossary Definition

Export duty

An export duty is a form of tax that a government charges on goods or materials leaving the country for international markets. It is used to raise revenue, maintain adequate domestic supply, influence trade balances, and restrict the export of critical or limited resources. The applicable rates and conditions depend on the nature of the product and current trade regulations.

Example: For instance, the Indian government may apply an export duty on iron ore to ensure sufficient domestic availability for steel producers and to help stabilize prices within the local market.

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