Excise Tax
An excise tax is a specific tax imposed by the government on certain goods and services. Unlike sales tax, which applies to a broad range of purchases, excise taxes target particular items, such as alcohol, tobacco, gasoline, and sugary drinks. The goal is often to raise revenue and discourage the consumption of products deemed harmful to health or the environment. This tax is usually included in the price of the item, so consumers may not see it as a separate charge when making a purchase.
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An excise tax is a specific tax imposed on certain goods and services, usually levied at the point of sale. Unlike general sales tax, which applies to a broad range of products, excise taxes target specific items like gasoline, alcohol, tobacco, and sugary beverages. The purpose of these taxes often includes generating revenue for the government and discouraging consumption of products that may negatively impact public health or the environment. The cost of the tax is typically included in the price consumers pay for these items.