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The incomes earned through excise tax are decent enough for the government. Excise tax is typically targeted on various items depending on the characteristics, features and usage. Goods like cigarettes, liquor, alcohol, vehicles and drugs are some of the common ones. Purchase and sale of property, sudden possession of wealth are all accountable to excise tax. Commodities that are not easily available in the, market are all liable to tax.
There is certainly a very logical reason behind introducing excise tax. Firstly, it helps to protect the citizens. Tobacco, alcohol, drugs are all harmful to the health of an individual.
By putting a tax on these items their consumption does decrease. These commodities directly and indirectly affect a whole section of the society. Certain other activities like gambling, trading and prostitution also fall under excise tax. The money earned by the government is used into welfare issues as well as on healthcare. The money may even be invested in the defense department. The most important factor is to punish the people involved in trading as well as welcoming malpractices in the nation. It is true that governments charge lot of money through tax but also has clear and valid reasons as to why they do it. For a better nation and a better environment excise tax really proves to be an investment.
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What Is Excise Tax ?
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