Unit 12 - legislation and packaging spirits Flashcards
Describe the non legalistic definition of excise duties
Is a form of sales tax that applies to a specific class of good, usually alcohol, petrol, or tobacco. Refers to an inland tax on the sale, or production for sale of these goods.
Excises are distinguished from customs duties which are taxes in importation.
Excises are inland taxes whereas duties are border taxes.
To provide a constant stream of revenue.
Describe Direct taxes.
Direct tax is one paid directly to the government by the persons on whom it is imposed. E.g income taxes, some corporate taxes, and transfer taxes (inheritance)
Adjusted to the individual characteristic of the taxpayer.
Describe Value Added Tax
VAT- applies to the market value added to a product or material at each stage of it’s manufacture or distribution. If a retailer buys a £20 bottle of spirit from a wholesale distributor and sells it for £30 to a retail customer then this tax would apply to the £10 difference.
Describe what is meant by a tax.
To impose a financial charge or other levy upon a taxpayer by a state or the functional equivalent of a state, such that failure to pay is punishable by law.
Describe indirect taxes.
“collected tax” such as VAT or sales tax.
Collected by intermediates who turn proceeds to the government & file the related tax return.
imposed on transactions
Describe sales tax
imposed when a commodity is sold to it’s final consumer.
“pay for what you spend”
Applied to luxury items.
Describe customs duties.
associated with state borders & customs control.
What is a tariff
list of commodities along with chargeable rate of customs duty.
Describe Excise Tax
form of sales tax that applies to a specific group.
-alcohol
petrol
tobacco
Inland tax on sale
What are duties?
border taxes.
