What is export duty?
Export duty is a tax imposed by a country or its governing body on goods being exported from the country. Exports are taxed in order to generate additional revenue for the country, as well as to protect domestic producers by making foreign goods more expensive. Depending on the type of goods that are being exported, certain exemptions may be available and rates can vary greatly.
What is the purpose of export duty?
The purpose of an export duty is typically twofold: firstly, it helps generate revenue for the state; and secondly, it protects domestic producers from competition with foreign imports by increasing the cost of those products abroad. In addition to this, export taxes help protect local industries by providing incentives for businesses within the country to invest in new technologies and processes that promote higher productivity levels while retaining jobs within the nation's borders.