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What is an Excise Duty?

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An excise duty, or excise tax, is an inland tax on the production or sale of certain goods. This can be contrasted with customs duties that are taxes on imported goods.
Excise duties are often described as hidden taxes because they show up in the price of goods without being explicitly paid by consumers. In many cases, they are applied on a per unit basis and may target things such as alcohol, tobacco and gasoline.
Overview: Excise Duty
Type
Business Cost
Definition
A domestic tax on certain goods, often on a per unit basis.
Related Concepts
Customs Duty

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