To protect key industries, some countries impose taxes on their exports instead of imports mainly because it is easier to collect taxes from the export industry.

Question

Quizplus · Accepted Answer

Countries impose taxes on imports, not exports to protect key industries. This is done in order to make foreign goods less competitive, thereby protecting domestic industries from competition. It would not make sense to impose taxes on exports, as this would make domestic products less competitive in foreign markets. Additionally, collecting taxes from the export industry would not necessarily be easier than collecting them from the import industry.

To Protect Key Industries, Some Countries Impose Taxes on Their