- Excises are taxes levied on certain goods or services, such as fuel, tobacco and alcohol.
- First of all, these are taxes that enterprises must pay, usually indirectly raising prices for consumers.
- Excises can be ad valorem (paid as a percentage) or specific (value charged per unit).
- Sin taxes are a form of excise tax on goods that have high social costs, such as alcohol and tobacco.
- Some excise taxes may be charged directly to the consumer, such as property taxes and excise penalties for certain retirement account activities.