Parallel imports hurt governments because they do not pay taxes.

Question

Quizplus · Accepted Answer

Parallel imports are products that are brought into a country from another market without the permission of the trademark owner in that country. While it is considered legal, parallel imports do not necessarily avoid taxes. In fact, parallel importers may still be required to pay taxes and customs duties when importing products into a country. Therefore, governments may still receive tax revenues from parallel imports.

Parallel Imports Hurt Governments Because They Do Not Pay Taxes