This indicator reflects the percentage of a nation's tax revenue that is derived from tariffs and levies imposed on imported goods and services provided by foreign entities to domestic consumers. These duties serve a dual purpose: they
generate essential revenue for government funding and help protect local industries from foreign competition. Tariffs can be calculated either as a fixed amount per unit or as a percentage of the item's value, influencing both the pricing of imports and trade balances. By examining this metric, policymakers can assess the effectiveness of trade policies, understand their impact on domestic markets, and evaluate how reliant the economy is on international trade for revenue generation.
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