What is an Excise Tax?

An excise, or excise tax, is any duty on manufactured goods that is levied at the moment of manufacture.

An excise is an indirect tax paid by the manufacturer who then passes the tax on to consumers through higher prices.

Excises are typically imposed in addition to an indirect tax such as a sales tax or value-added tax (VAT).

Excise taxes can deter consumers from using certain products. This may be for health reasons (excise taxes on tobacco or alcohol) or environmental reasons (excise taxes on chemicals and gasoline).

Reference:

https://en.wikipedia.org/wiki/Excise

https://www.investopedia.com/terms/e/excisetax.asp

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