What type of tax is specifically levied on the retail of particular products such as alcohol and gasoline?

Prepare for WGU ACCT3630 C237 Taxation I Exam with extensive question sets, detailed explanations, and study tips geared to maximize your performance and knowledge.

An excise tax is specifically levied on certain goods, particularly those considered harmful or non-essential, such as alcohol and gasoline. These taxes are often implemented to discourage consumption of those products or to raise revenue for government programs related to their consumption, such as road maintenance funded by gasoline taxes. Unlike sales tax, which is applied broadly to goods and services sold at retail, excise taxes are specific to individual products and are often included in the price at the point of sale. This targeted approach allows governments to regulate specific behaviors or fund certain public services directly related to the taxed product.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy