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Why not simply get rid of these taxes? Sounds counter-productive. Are they seriously hopping manufacturers are going to go setup manufacturing facilities there

• Daishiman 6y ago
  Because countries dependent on non-value-added exports typically have serious issues with balancing a competitive exchange rate with inflation. Promoting the purchase of expensive foreign goods dries up the supple of foreign currency generally used as a reserve, which drives down the value of local currency, generates an inflationary spiral, and increases the cost of more vital industries to acquire foreign goods necessary for production. Hence import taxes in a lot of these countries are used to prevent bank runs, inflation, and access to critical goods.
  • 908B64B197 6y ago
    Sounds like they should switch to a better currency.