Federal Excise Tax

Federal Excise Tax is a tax imposed by the U.S. government on specific goods and activities, such as gasoline, tobacco, alcohol, and certain communications services. It is usually included in the purchase price and collected from manufacturers or service providers, then passed along to consumers indirectly. The purpose of this tax is to generate revenue and sometimes to discourage the consumption of certain products. The rates vary depending on the product or activity taxed, and businesses responsible for selling these goods or services are responsible for collecting and remitting the tax to the government.