What Is Excise Tax ?  

Excise taxes very much similar to a sales tax are collected from the merchants and are subsequently handed over to the government. This type of tax collection is considered to be a minor source of income for the government. Unlike income taxes, which are levied from the consumers directly, an excise tax is framed in such a manner that it gets amalgamated in the price of the product in a way that it becomes hidden for the consumers and ultimately is a burden on them.

Excise taxes are levied on manufacture and sale of particular types of products. A common example of an excise tax is the supplementary tax that most of the nation’s government levies on alcohol. The reasons for a nation to order excise taxes varies. Generally there are two basic aims of levying excise taxes one is to raise additional funds for the government so, that it can engage this fund in reforms and the other most prominent reason is to curtail the use of certain products which could be harmful for the society.

From a consumer point of view an excise tax remains an irritating issue. The merchants charge them in their own fashion which shoots up the price of the item inconsiderably when compared to the list price. In few instances the excise tax is levied per unit and in other case ad valorem taxes are charged which means as per the value of the item. In both the instances the merchant can choose to incorporate the excise tax in the list price of the product.

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What Is Excise Tax

Excise-Tax-On-Health-Care      The aim of an excise tax on health care is to restructure the health care industries. Its basic idea is to help in financing the health care. The best thing about this plan is that it estimates a round about $150 billion in approximately 10 years. The plan says that the tax would be given by the employers, insurance companies and the people who belong to higher income group category. A proposal like this intends to twist the bob of the cost pendulum in such a manner that in future it would help in bringing stability. More..




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What Is Excise Tax ? )
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