Which tax is imposed on imports and exports of goods?

Appeared in: DSSSB -28 August 2019 (Shift-2)

Explanation

Custom Duty is a tax imposed on goods when they are transported across international borders.
It applies to both imported goods (brought into a country) and exported goods (sent out of a country).
The primary purpose of customs duties is to raise revenue and to protect domestic industries from foreign competition.
It is collected by customs officials at borders, ports, and airports.

Option A: Excise tax is levied on the manufacture or production of goods within a country, not on their import or export.
Option C: Service tax is levied on the provision of services, not on goods. It has been replaced by GST in India.
Option D: Sales tax is a tax on the sale of goods within a country, paid by the final consumer. It is not related to cross-border trade.

Clinical Relevance

Nursing practice connection: This is primarily an exam-oriented knowledge point with limited direct bedside application, so retain Types of Indirect Taxes as background academic context rather than a clinical decision trigger.
While this is a general knowledge question, understanding different taxes has relevance in healthcare management.
Hospitals and healthcare organizations often import specialized medical equipment, devices, and medications. Custom duties directly impact the cost of these essential items.
Nurse administrators and those in procurement roles must factor in custom duties when preparing budgets and making purchasing decisions to manage costs effectively.

How to Approach the Question

This is a factual recall question from the domain of general knowledge/economics.
First, read the question carefully to identify the key concepts: 'tax', 'imports', and 'exports'.
Next, analyze each option by recalling its definition.
Excise tax relates to domestic production.
Custom Duty relates to international trade (imports/exports).
Service tax relates to services.

Concept Tested & Keywords

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Practise the full DSSSB -28 August 2019 (Shift-2)

Attempt every question from this paper in a timed mock, then review the full solution for each one.