Excise Highlight Article For Free

In general, an excise tax is a tax is imposed on the sale of specific goods or services, or on certain uses. Federal excise tax is usually imposed on the sale of things like fuel, airline tickets, heavy trucks and highway tractors, indoor tanning, tires, tobacco and other goods and services.

The primary function of these duties and levies is to ensure a constant stream of revenue for the State, with a secondary function of discouraging consumption of certain harmful products; i.e. harmful to human health or to the environment.

1. variable noun usually NOUN noun Excise is a tax that the government of a country puts on particular goods, such as cigarettes and alcoholic drinks, which are produced for sale in its own country.

Excise is defined as a tax charged on certain items or goods. A tax charged on cigarettes is an example of an excise tax. noun. 1. An internal tax imposed on the production, sale, or consumption of a commodity or the use of a service within a country.

EXCISE TAXES REDUCE CONSUMPTION AND IMPROVE HEALTH. Excise taxes generally result in higher prices for consumers, reducing demand for taxed products.

Key Takeaways An excise tax is similar to a sales tax, but it's levied only on certain products or services. The most common excise taxes are imposed on tobacco, alcohol, and gasoline.The tax is generally payable by the manufacturer.

Types of Excise Duty Basic Excise Duty: Basic Excise Duty is levied under Section 3 of the Central Excises and Salt Act, 1944.Special Excise Duty: Central Excise Duty is charged under Section 37 of the Finance Act, 1978.Education Cess on Excise Duty: According to Section 93 of Finance (No.

In the short run, an excise tax increases the price of the product, albeit by less than the full amount of the tax, and the price burden is shared by both the producers and the consumers. The exact effect depends on the elas- ticities of demand and supply for the product.

Excise taxes are commonly levied on cigarettes, alcoholic beverages, soda, gasoline, insurance premiums, amusement activities, and betting, and typically make up a relatively small and volatile portion of state and local and, to a lesser extent, federal tax collections.

Excise tax examples Alcohol (per-unit) Firearms/ammunition (per-unit) Indoor tanning services (percentage of price) Gasoline and diesel (per unit) Airline tickets (percentage of price)