ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A revenue tariff increases government funds. For example, countries that do not create their own natural products such as cotton, bananas or tabacco may create a tariff on importing them. Revenue is then generated for the Government from the business doing the importing.

Detailed explanation-2: -revenue tariff. noun [ C ] TAX, ECONOMICS. a tax on imported goods that has the purpose of making money for the country that imports them: If a country imposes the maximum revenue tariff, can it be expected to improve the welfare of its people?

Detailed explanation-3: -Tariffs have three primary functions: to serve as a source of revenue, to protect domestic industries, and to remedy trade distortions (punitive function).

Detailed explanation-4: -These include specific tariffs, ad valorem tariffs, compound tariffs, tariff-rate quotas, and retaliatory tariffs. A specific tariff is a tax imposed directly onto one imported good and does not depend on the value of that imported good.