Excise Introduction and Overview

Question 1

“Excises are taxes levied on particular products, or on a limited range of products, which are NOT:

Answer 1

taxes which we usually associate with goods and services such as consumption taxes like Value Added Taxes (VAT),

NOT import duties, and

NOT export duties

Question 2

What stage of production & distribution can Excise be imposed?

Answer 2

Any

Question 3

How is Excise usually assessed?

Answer 3

Weight, strength or quantity of product

Question 4

Excise is imposed on products and services?

Answer 4

Both, but mostly products

Question 5

Why is Excise known as Consumer tax or Sin Tax?

Answer 5

Because the most common commodities, countries put Excise tax on is Alcohol, Tobacco and Petroleum

Question 6

Economic efficiency meaning?

Answer 6

Using Excise system to help pay for the consequences of over consumption

Question 7

Hypothecation is?

Answer 7

The ear marking of a certain percentage of excise for programs that combat that commodities negative effects, such as alcohol programmes

Question 8

When is excise duty due?

Answer 8

When the product is:-
released for consumption
Vender makes delivery under distance selling arrangements
Missing consignments are discovered
Goods imported for personal use are are sold commercially