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	== See also ==		== See also ==
	* [[Trade Policy]]		* Trade Policy
	* [[Taxation]]		* Taxation
	* [[International Trade]]		* International Trade

	== References ==		== References ==

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'''Export tax''' is a tax levied on goods that are exported, paid by the exporter or collected at the border. Export taxes are used to raise revenue, to stabilise domestic prices, and to influence the pattern of trade.

== Forms ==
An export tax may be levied as a specific amount per unit, or as a percentage of the value of the export. It may apply to all exports or to particular goods, and it may be set at different rates for different products.

Export taxes are related to other instruments of trade policy, including export quotas and export licensing requirements. All of these instruments restrict exports and can raise the domestic price of the taxed good.

== Objectives ==
One objective of an export tax is to raise revenue. This is particularly relevant for countries that export natural resources, where the tax can capture a share of the resource rent for the government. Export taxes on resources are common, and they are a significant source of revenue in some countries.

A second objective is to stabilise domestic prices. By taxing exports, the government reduces the incentive to export and increases the supply available in the domestic market, which lowers the domestic price. This is used for food staples and for other essential goods.

A third objective is to promote domestic processing. By taxing exports of raw materials, the government makes it more attractive to process them domestically, since the tax is avoided on processed goods. This is intended to encourage industrialisation and to capture more of the value added.

== Effects ==
The effects of an export tax depend on the position of the country in the world market. If the country is a small exporter, the world price is unaffected, and the tax is borne by domestic producers. If the country has market power, the tax may lower the world price, so that part of the burden is borne by foreign consumers.

The tax reduces the volume of exports and lowers the domestic price. It transfers income from producers to the government and, where the world price falls, to foreign consumers. The net effect on welfare depends on the terms of trade effect and on the distortions that the tax creates.

The promotion of domestic processing may not succeed. If the country does not have a comparative advantage in processing, the protected processing industry may be inefficient, and the cost to the economy may exceed the benefits. The policy may also be difficult to sustain if it encourages smuggling.

== International Rules ==
Export taxes are generally permitted under international trade rules, though there are disciplines on their use in some agreements. The rules are less developed than those on tariffs and on other import restrictions, and countries retain substantial freedom to use export taxes.

The use of export taxes is a subject of international negotiation, particularly for resources. Importing countries argue that export taxes distort trade and raise prices, while exporting countries argue that they are a legitimate instrument for capturing resource rents and for promoting development.

== Resource Rent Capture ==
Export taxes are widely used to capture a share of the rent from natural resources. The rent is the difference between the value of the resource and the cost of extracting it, and it accrues to the owner of the resource. Where the resource is owned by the state, the export tax is a means of capturing the rent for the public.

The design of the tax affects its effects. A tax based on the value of the export captures a share of the revenue regardless of the cost of extraction, while a tax based on the profit captures a share of the rent. The choice affects the incentives for extraction and for investment.

The use of export taxes on resources raises questions of stability and of credibility. Investors require assurance about the tax regime, and frequent changes can deter investment. The design of the fiscal regime for resources must balance the objective of capturing rent against the need to attract investment.

== Export Restrictions and Trade ==
Export taxes and other export restrictions are subject to international rules, though the disciplines are less developed than those on import restrictions. The rules permit the use of export taxes in many circumstances, and they are a subject of negotiation in trade agreements.

The use of export restrictions has increased, particularly for minerals and for agricultural products. The restrictions are used to secure domestic supply, to promote domestic processing, and to capture rent. They have been criticised by importing countries for distorting trade and for raising prices.

The debate about export restrictions reflects broader disagreements about the balance between national sovereignty and international rules. Exporting countries argue that they have the right to manage their resources, while importing countries argue that restrictions distort trade and harm consumers.

== Dual Pricing and Domestic Supply ==
Export taxes are related to dual pricing, in which the domestic price of a good is held below the world price. The tax reduces the incentive to export and increases the supply available domestically, which lowers the domestic price.

This effect is used to protect domestic consumers and to support domestic industry. The lower price of the input benefits downstream producers, who can compete more effectively. The policy is used for energy, for agricultural inputs, and for other essential goods.

The policy has costs. It reduces the revenue of producers and may discourage investment. It creates incentives for smuggling and for the diversion of the subsidised good. It may also distort the allocation of resources, by encouraging the use of the subsidised input in activities where the country has no comparative advantage.

== Summary ==
Export taxes are used to raise revenue, to stabilise domestic prices, and to promote domestic processing, and they are a significant instrument of resource taxation. Their effects and their treatment under international rules are central to the analysis of trade and of resource policy.

== See also ==
* [[Trade Policy]]
* [[Taxation]]
* [[International Trade]]

== References ==

<ref name="r1">Research on export taxes and on trade policy.</ref>
<ref name="r2">Studies of resource taxation and of the promotion of processing.</ref>
<ref name="r3">Analyses of the international rules on export restrictions.</ref>

<references />

[[Category:Taxation]]
[[Category:Trade policy]]
[[Category:International trade]]

Export Tax - Revision history

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