What kind of tax is placed on gasoline and tobacco?
I believe the tax is called an excise tax. This tax is imposed by the state or Federal Government onto certain goods and services. It can be applied to products such as gasoline or fuel like substances so that the Government can use these taxation funds on certain infrastructures and for the actual use of the gas/fuel.
Excise tax is also applied to goods which are deemed to be addictive and 'bad' for your health. This includes things such as alcohol, tobacco, gambling services, etc.
These taxes are separate taxes to other taxes such as GST and therefore, products such as the ones mentioned can in fact be taxed twice.
No comments:
Post a Comment