What does excise duty mean?

An excise or excise tax (sometimes called an excise duty) is a type of tax charged on goods produced within the country (as opposed to customs duties, charged on goods from outside the country). It is a tax on the production or sale of a good.

What are the examples of excise duty?

WHAT IS IT? Excise duties and levies are imposed mostly on high-volume daily consumable products (e.g. petroleum and alcohol and tobacco products) as well as certain non-essential or luxury items (e.g. electronic equipment and cosmetics).

How does excise duty work?

Excise Duty is a form of indirect tax that is levied on goods that have been manufactured in the country. It is levied by the government. It ideally has to be paid by the manufacturer of goods at the time of introduction of goods in to the market. Thus, it is commonly referred to as manufacturing tax.

What is excise duty and what is its purpose?

Excise duties are indirect taxes on the sale or use of specific products. They are usually applied as an amount per quantity of the product e.g. per kg / per hl /per degree alcohol / per 1000 pieces etc. All revenue from excise duties goes entirely to the Member States.

What do you need to know about excise duty?

Excise Duty. 1. WHAT IS EXCISE DUTY?  An excise duty is a type of tax charged on goods produced within the country (as opposed to customs duties, charged on goods from outside the country)  It is a tax on the production or sale of a good  Source of revenue for government to provide public service.

Which is the opposite of excise duty in India?

Excise Duty. Excise duty is a form of tax imposed on goods for their production, licensing and sale. An indirect tax paid to the Government of India by producers of goods, excise duty is the opposite of Customs duty in that it applies to goods manufactured domestically in the country, while Customs is levied on those coming from outside

Which is the best description of an excise tax?

An excise tax is a legislated tax on specific goods or services at purchase such as fuel, tobacco, and alcohol. Excise taxes are intranational taxes imposed within a government infrastructure rather than international taxes imposed across country borders.

What is the difference between excise duty and GST?

However, the Goods and Services Tax (GST), introduction in July 2017, subsumed many types of excise duty. Today, excise duty applies only on petroleum and liquor. Excise duty was levied on manufactured goods and levied at the time of removal of goods, while GST is levied on the supply of goods and services.