International Trade Theory and Policy
by Steven M. Suranovic
An export tax is a tax collected on exported goods. As with tariffs, export taxes can be set on a specific or an ad valorem basis. In the US, export taxes are unconstitutional since the US constitution contains a clause prohibiting their use. This was imposed due to the concerns of Southern cotton producers who exported much of their product to England and France.
However, many other countries employ export taxes. For example, Indonesia applies taxes on palm oil exports; Madagascar applies them on vanilla, coffee, pepper and cloves; Russia uses export taxes on petroleum, while Brazil imposed a 40% export tax on sugar in 1996. In December 1995 the EU imposed a $32 per ton export tax on wheat.
International Trade Theory and Policy - Chapter 10-4: Last Updated on 8/16/03