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An excise tax is imposed on goods

Economics
WAEC 2012

An excise tax is imposed on goods

  • A. smuggled into the country
  • B. manufactured locally
  • C. imported into the coutry
  • D. seized by custom officials
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Correct Answer: Option B
Explanation

Excise taxes are internal taxes that are levied on the sale of specific goods and services, such as alcohol, fuel and tobacco. These goods are goods that are manufactured in the country. It is an indirect tax that is not paid by the customers directly instead, the excise tax is imposed on the supplier or the producer, who then includes it in the product price


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