What is excise tax?

Every entrepreneur, starting his ownactivity, is faced with a choice of what it will do: the sale of goods of daily demand, the provision of services or something else. In any case, he must know the rules of taxation in order to properly interact with the state. In turn, state bodies establish a tax policy, and in each sphere it has its own. As for the objects of mass consumption, the excise system operates here. And the businessman should remember this. And what is the excise, we will consider in detail in the article.

Definition of Excise Duty

Excise is a word with Latin roots. A literal translation of his "cut off". In the taxation system, excise tax is defined as an indirect nationwide tax, which is mainly applied to objects of mass consumption. Sometimes, municipal, transport and other services can also be subject to excise taxes. A feature of excises is that it is already included in the price of goods or services, and therefore is indirect and paid by the producer.

Examples of goods that are subject to excise taxes,can be tobacco products, alcoholic beverages, luxury goods and other goods and services. A full list of goods and services is provided in the Tax Code of the Russian Federation. The excises are of great importance for the replenishment of the state budget of various countries.

Also, the following article can be useful to you. What are the taxes.