What is excise tax?

[Vpaunuares]

I’ve been seeing the term what is excise tax on receipts and government forms, but I’m not totally sure what it means. From what I understand, excise tax is a tax placed on specific goods or activities, like fuel, alcohol, cigarettes, or sometimes luxury products. But how does it work in real life? Is it added to the price before buying, or shown separately like sales tax? And is excise tax meant to raise revenue, discourage certain behaviors (like smoking), or both?

 

[Muichiro]

An excise tax is a tax placed on specific goods or activities, such as gasoline, alcohol, tobacco, or airline tickets. It’s usually included in the price of the product and is paid by the manufacturer or seller, not directly by the buyer—though the cost is often passed on to consumers.

 

[Jarwish]

Excise tax is a government-imposed tax on the production, sale, or use of specific goods, such as alcohol, tobacco, fuel, or luxury items. It is usually included in the product’s price, aimed at generating revenue and sometimes discouraging consumption of certain products.

 

[nikhilrajoria]

Excise tax is a type of tax imposed on the government by imposing on certain commodities such as fuel, alcohol, and tobacco at the production or sale level but not at the check out.