Which type of tax is imposed by a country on goods that are brought into its borders from abroad?

• A. Excise tax
• B. Sales tax
• C. Value-added tax (VAT)
• D. Tariff

Answer: (D)

Verified step by step guidance

1. Understand the definition of each tax type: An excise tax is levied on specific goods produced or sold within a country, a sales tax is applied to the sale of goods and services within a country, and a value-added tax (VAT) is a consumption tax placed on a product whenever value is added at each stage of production or distribution within the country.
2. Recognize that the question asks about a tax imposed on goods brought into a country from abroad, which means it concerns international trade rather than domestic transactions.
3. Recall that a tariff is a tax specifically imposed on imported goods when they cross a country's borders, making it distinct from excise, sales, or VAT taxes that apply domestically.
4. Conclude that the tax type described in the question is a tariff because it directly relates to imports and international trade policy.
5. Summarize that tariffs serve to protect domestic industries by making imported goods more expensive and are a key tool in trade regulation.