Excise Tax
An Excise Tax is a tax on economic transactions for a specific good or service.
- AKA: Special Excise Duty, Excise Duty.
- Context:
- It can range from (typically) being a Per Unit Excise Tax to being an ad valorem Excise Tax.
- It can (often) be imposed on the Producer rather than on the Retail Seller.
- …
- Example(s):
- Alcoholic Beverage Excise.
- Energy Excise.
- a Boat Excise Tax, for using waterways.
- a Rental Motor Vehicle Excise.
- an Excise Duty on Swiss watches.
- …
- Counter-Example(s):
- a Customs Duty.
- See: Sin Tax, Duty (Economics), Goods (Economics), Customs, Indirect Tax, Sales Tax, Value Added Tax, Per Unit Tax, ad Valorem Tax.
References
2016
- https://en.wikipedia.org/wiki/Sales_tax#Types
- Excise taxes, applied to a narrow range of products, such as gasoline or alcohol, usually imposed on the producer or wholesaler rather than on the retail seller.[1]
- ↑ "Excise essentials". Australian Taxation Office. http://www.ato.gov.au/businesses/pathway.aspx?pc=001/003/095. Retrieved April 14, 2011.
- (Wikipedia, 2016) ⇒ https://en.wikipedia.org/wiki/excise Retrieved:2016-9-28.
- An excise or excise tax (sometimes called a special excise duty) is an inland tax on the sale, or production for sale, of specific goods or a tax on a good produced for sale, or sold, within a country or licenses for specific activities. Excises are distinguished from customs duties, which are taxes on importation. Excises are inland taxes, whereas customs duties are border taxes.
An excise is considered an indirect tax, meaning that the producer or seller who pays the tax to the government is expected to try to recover or shift the tax by raising the price paid by the buyer. Excises are typically imposed in addition to another indirect tax such as a sales tax or value added tax (VAT). In common terminology (but not necessarily in law), an excise is distinguished from a sales tax or VAT in three ways:
- an excise typically applies to a narrower range of products;
- an excise is typically heavier, accounting for a higher fraction of the retail price of the targeted products; and
- an excise is typically a per unit tax, costing a specific amount for a volume or unit of the item purchased, whereas a sales tax or VAT is an ad valorem tax and proportional to the price of the good.
- Typical examples of excise duties are taxes on gasoline and other fuels, and taxes on tobacco and alcohol (sometimes referred to as sin tax).
- An excise or excise tax (sometimes called a special excise duty) is an inland tax on the sale, or production for sale, of specific goods or a tax on a good produced for sale, or sold, within a country or licenses for specific activities. Excises are distinguished from customs duties, which are taxes on importation. Excises are inland taxes, whereas customs duties are border taxes.
- https://en.wikipedia.org/wiki/Excise_tax_in_the_United_States#Excise_tax_types
- QUOTE: Excise taxes are usually taxes on events, such as the purchase of a quantity of a particular item like gasoline, diesel fuel, beer, liquor, wine, cigarettes, airline tickets, tires, trucks, etc. These taxes are usually included in the price of the item — not listed separately like sales taxes usually are. To minimize tax accounting complications, the excise tax is usually imposed on quantities like gallons of fuel, gallons of wine or drinking alcohol, packets of cigarettes, etc. and are usually paid initially by the manufacturer or retailer.
Excise taxes are often passed on to the consumer who eventually consumes the product. The price for which the item is eventually sold is not generally considered in calculating the amount of the excise tax. Income taxes, value added taxes (VATs), sales taxes, and transfer taxes are examples of other excise taxes but are typically not called excise taxes (in the United States) because of the different ways they are imposed. In the U.S. essentially the only taxes called excise taxes are the taxes on quantities of enumerated items (whiskey, wine, tobacco, gasoline, tires, etc.). Other taxes on certain events may technically be considered excise taxes but may or may not be collected under the name "excise tax."
- QUOTE: Excise taxes are usually taxes on events, such as the purchase of a quantity of a particular item like gasoline, diesel fuel, beer, liquor, wine, cigarettes, airline tickets, tires, trucks, etc. These taxes are usually included in the price of the item — not listed separately like sales taxes usually are. To minimize tax accounting complications, the excise tax is usually imposed on quantities like gallons of fuel, gallons of wine or drinking alcohol, packets of cigarettes, etc. and are usually paid initially by the manufacturer or retailer.