Question

Why are revenue tariffs levied?

Answer 1

Revenue tariff is a duty imposed on imported goods and services in order for a nation to generate public funds. The major reason why this tax is levied is to restrict international trade and improve the consumption level of domestic goods and services. Revenue tariff makes imported goods more expensive compare to domestic goods.

Answer 2

A revenue tariff is a tax applied to increase the revenue(money brought in) of an economy. Usually occurs in business. For example, oil that is imported or exported from the US is a revenue tariff.