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14 February, 10:18

Which tax is collected on the production of specific goods, like cigarettes, within a country?

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  1. 14 February, 10:42
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    Excise tax is collected on the production of specific goods, like cigarettes, within a country.

    An excise tax consistes on an indirect tax on the sale of a particular good or service such as fuel, tobacco and alcohol. Indirect means that individual consumers do not paid the tax directly, instead, the Internal Revenue Service (IRS) levies the tax on the producer or merchant, who passes it onto the consumer by including it in the product's price.

    It is any duty on manufactured goods which is levied at the moment of manufacture, rather than at sale.
  2. 14 February, 10:45
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    If your talking about cigarettes it could be what people call a "sin tax". These are taxes put on goods deemed unhealthy for society.
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