What is Excise Tax?Excise tax is a specific tax imposed on certain goods, services, or activities. Unlike sales tax, which applies to most consumer purchases, excise taxes typically target specific items like alcohol, tobacco, fuel, and luxury goods. It is usually included in the product price rather than charged separately at checkout. 🔹 Revenue Generation – Governments use excise taxes to raise funds for public services. 🔹 Discouraging Harmful Consumption – Applied to products like cigarettes and alcohol to reduce usage. 🔹 Environmental Protection – Carbon taxes and fuel excise taxes encourage eco-friendly alternatives. 🔹 Regulation of Specific Industries – Helps manage the production and distribution of certain goods.