Border Tax Adjustment

Border Tax Adjustment

A tax to which domestically produced goods and imports are subject but from which exports are exempt. Border tax adjustments are intended to encourage exports while not making imports excessively competitive against domestic goods. This may be seen as a barrier to trade.
References in periodicals archive ?
The border tax adjustment, for example, is poised to raise approximately $1.
And yet, the consideration of a border tax adjustment on goods imported into the United States may persuade multinational businesses, particularly manufacturers, distributors, and retailers, to reevaluate their intercompany supply chain--which has U.
The border tax adjustment would be hugely complex given the international supply-chain system, leading to an increase in the attendant bureaucracy even if the regulatory bureaucracy is reduced in size.
The core of the reform, however, is a border tax adjustment that has only existed in value-added tax to date, but not in taxes on income or corporate profit.
The objective of a border tax adjustment is to level the playing field between taxed domestic industries and untaxed foreign competition by ensuring that internal taxes on products are trade neutral.
The appropriate border tax adjustment for domestic climate policy that ensures import volume neutrality is summarized in the following proposition:
And for New Zealand agricultural exports to be liable for a border tax adjustment, any US climate change legislation--which is many years away from being passed and implemented--would also need to cover agriculture, which is by no means a likely outcome.
For example, a WTO member country could violate GATT by imposing a border tax adjustment on imported alcohol that is higher than the taxes and charges that would apply if purchased domestically, or by varying quotas for duty-free importation of alcohol according to a traveller's country of origin.
As a result, he said that any climate bill would have to include a border tax adjustment to protect U.
Frequently, this type of border tax adjustment is discussed with respect to sub-global carbon-pricing schemes (see, for example, Hoel 1996; Demailly and Quirion 2005; and Courchene and Allan 2008).