A British planter in the Caribbean imports 500 tons of rice at Rs. 20 per ton. He pays a 3% import duty and then a 2% export tax on the total amount collected (after duty). How much total tax does he pay?

Step-by-step solution

1. Calculate the value of the rice: $500\times 20=10,000$ rupees.
2. Compute the 3% import duty: $0.03\times 10,000=300$ rupees.
3. Add the duty to the value to find the amount for export tax: $10,000+300=10,300$ rupees.
4. Compute the 2% export tax on this amount: $0.02\times 10,300=206$ rupees.
5. Add the two taxes: $300+206=506$ rupees.

Concept tested: Tariff calculation in colonial trade

Published 4 October 2026 · How this solution was prepared and checked