What is an excise tax?
Q: What is an excise tax?
A: An excise tax is an indirect tax charged on certain goods.
Q: Who pays the excise tax?
A: The producer or the merchant who sells the goods pays the excise tax to the government.
Q: Is excise tax considered as a sales tax?
A: No, excise tax is not considered as a sales tax because it is an indirect tax.
Q: What are some products that commonly have excise taxes?
A: Products such as gasoline, alcohol, and cigarettes commonly have excise taxes.
Q:Which government levels can charge excise taxes?
A: Excise taxes may be charged by both state and federal governments.
Q: Why is the excise tax charged to the producer or the merchant?
A: Excise tax is charged to the producer or the merchant because it is an indirect tax.
Q: How is the excise tax included in the product’s price?
A: The excise tax is commonly included in the retail price of a product.
