Excise Tax on Luxury Goods

An excise tax on luxury goods is a special tax imposed on items considered non-essential or high-end, such as expensive jewelry, high-end vehicles, and designer products. The purpose of this tax is to generate government revenue and reduce excessive consumption of luxury items. This tax is typically included in the price of the product, making it less visible to consumers. The goal is to target affluent buyers, encouraging them to contribute more to public funds while potentially steering spending towards more essential goods.