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Excise Duty Taxes

Excise Duty

Excise duty taxes are those paid on items purchased within the country, whereas customs duties are those paid on items purchased outside of the country and the brought into this county.

Excise duty applies to the purchase of many items in the country, including gasoline and alcohol. In most cases the taxes are applied on the volume of the purchase, rather than the purchase price of that item.

The tax is an indirect tax which is collected at the point of purchase and the taxes are then forwarded to the appropriate tax jurisdictions. In fact, consumers may be unaware if the actual cost of the excise tax, as it is already included in the price of the item.

Excise duty taxes can be applied to items from a variety of jurisdictions. In addition, excise duty can be applied in addition to other taxes, including a sales tax, significantly increasing the cost of that item.

Duty taxes may also be collected on items brought into the country, but that is a customs duty. While some items may be taxed according to volume, most are taxed in other ways.

For example, a customs duty may simply be applied on the total value of merchandise brought into this country. However, the duty tax may also be applied on the weight of the item or the materials which were used to manufacture the item.

NEXT: A Quick Explanation of Duties

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