Border Adjustment Tax

Explanation :

• Border adjustment tax is a short name for a proposed destination-based cash flow tax (DBCFT).
• It is a value-added tax on imported goods and is also referred to as a border-adjusted tax, destination tax or border tax adjustment.
• The border adjustment tax (BAT) levies a tax depending on where a good is consumed rather than where it is produced.
• It is a fiscal measure that imposes a charge on goods or services in accordance with the destination principle of taxation.
• BAT seeks to promote “equal conditions of competition” for foreign and domestic companies supplying products or services within a taxing jurisdiction.