Legal Definitions - excise

Definition: Excise is a type of tax that is added to the price of goods produced or sold within a country. It is an indirect tax, meaning that it is not paid directly by the consumer, but is included in the price of the product.

Example: In the United States, excise taxes are added to items such as gasoline, tobacco, and alcohol. For example, when you purchase a gallon of gasoline, a portion of the price you pay goes towards the excise tax on gasoline. This tax is then used to fund various government programs and initiatives.

Explanation: The example of gasoline illustrates how an excise tax works. The tax is added to the price of the product, in this case, gasoline, and is paid by the producer or seller. The consumer indirectly pays the tax through the increased price of the product. The revenue generated from the excise tax is then used to fund government programs and initiatives.