What‘s The Difference Between Sales Tax and Excise Tax?
Sales tax and excise tax are two types of taxes imposed on goods and services in various countries around the world.
Sales tax is a tax that is added to the cost of goods or services at the point of sale. It is usually calculated as a percentage of the total sale price and varies from state to state. The purpose of sales tax is to generate revenue for the government and is typically used to fund public services such as schools, roads, and public safety.
And excise tax is a tax that is levied on specific goods such as alcohol, tobacco, and gasoline. It is also known as a “sin tax” because these goods are considered harmful to individuals and society. Excise tax is usually included in the price of the product and is collected by the manufacturer or distributor.
One of the key differences between sales tax and excise tax is the way they are calculated and collected. Sales tax is added to the total cost of goods or services, while excise tax is included in the price of specific products. Additionally, sales tax is collected by the retailer at the point of sale, while excise tax is typically collected by the manufacturer or distributor.Read More…
