Tariff protection hurts consumers

As the announcement of the budget for the upcoming fiscal year, FY27, draws near, lobbies and special interest groups representing their respective industries and trade associations make a push for favourable fiscal policies to policymakers. Although the main focus is to lower taxes, which is indeed a valid contention, and increase subsidies and handouts in return for a promise of higher industrial growth, many industry representatives wary of competition from imported goods also lobby for higher customs duties, regulatory duties and other forms of internal taxes on imports to increase the price of competing imported goods. The higher the price of imported goods, the lower the quantity demanded and consequently lower the competition for local producers in the domestic market. Therefore, analysis on the performance of key industries and the impact of government policies becomes increasing...