Excise Duty Definition
In simple terms, excise duty is a tax that is levied on certain goods that are considered harmful to society. These goods include tobacco, alcohol, and petrol. The purpose of excise duty is to discourage people from consuming these products.
Excise duty is usually imposed by the government at the manufacturing stage. This means that the manufacturers of these products have to pay the tax before they can sell their products. The amount of tax that they have to pay depends on the type and quantity of product they are manufacturing.
When consumers purchase these products, they also have to pay excise duty. This makes these products more expensive, which in turn discourages consumption. Excise duty therefore helps to reduce the consumption of harmful goods in society.
