Which of the following is an example of a tax collected at the border?

• A. Domestic services
• B. Local property
• C. Tourist attractions
• D. Customs duties

Answer: (D)

Taxes collected at the border are charges placed on goods as they cross into a country. The best example is customs duties, a tax assessed by the government on imported goods and collected by border officials at the point of entry. These duties raise government revenue and can influence trade by making imports more expensive, which can encourage people to buy domestically produced goods or help protect local industries. The other options don’t fit because they refer to activities or assets inside the country—domestic services are provided within the country, local property is about ownership within a locality, and tourist attractions generate revenue from that activity, not tax collected at the border.