An excise is an internal tax levied on the production, distribution and consumption of a commodity or a service within a country. It is levied by the government on retail prices of non-essential consumer goods. Thus the tax levied on items like tobacco, liquor, fuel and long distance telephone calls are known as excise duty. Certain privileges like public entertainment shows like movies, plays etc also attract excise duty.
An excise apart from being levied on production, sale and use of goods or service, can also be levied for carrying on an occupation or a certain activity. In fact, today the word excise is used for different licenses and internal revenue tax with the exception of income tax.
An excise apart from being levied on production, sale and use of goods or service, can also be levied for carrying on an occupation or a certain activity. In fact, today the word excise is used for different licenses and internal revenue tax with the exception of income tax.