Custom duties tax is the type of tax that is collected by a custom department based on multiple factors. It is a type of tax that is calculated after adding price, transportation and insurance costs. Custom duty tax is usually charged on imported items and goods.

Like other taxes, Custom duty is a type of levy that is to be collected with a certain percentage calculation. The total percentage of the tax is added after the assessment of elements like quality, weight, and size.  In the case of automobiles, the customs duty is considered after evaluating weight, dimension and power capacity.

There are majorly two purposes of collecting the custom duty tax. Firstly, the idea behind collecting custom tax is to make sure that revenue is generated for governmental operations. Secondly, government preference is to support locally manufactured items. Custom duty taxes can discourage imports to a great extent.

Custom duty is said to be a tariff that is collected on transportation of the goods across the borders. With custom duty, there are multiple factors that can have a supporting role. With custom duty tax economy can be strengthened and supported. Custom duty collection is handled by a custom department. Professional and skilled resource is required in order to operate the department. It can create a lot of job opportunities for people. Last but not least; custom duty can help the government restrict the type of goods that can damage economic stability.


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