Question 1

What does Excise Duty mean?

Accepted Answer

Excise duty is a domestic tax levied on specific goods regardless of their origin — it applies to both domestic production and imports. It is commonly applied to alcohol, tobacco, fuel, gambling, and in many countries to motor vehicles (especially high-emission or high-engine-displacement vehicles). Unlike customs duty (which applies only to imports and is ad valorem — a percentage of value), excise is often specific: a fixed amount per litre of alcohol, per 1,000 cigarettes, per litre of fuel, or per kilowatt of engine power. Excise duties are in addition to customs duty and VAT. For imports, the sequence is: customs value → customs duty → excise duty → VAT (calculated on the sum of value + duty + excise). Countries with high excise on cars (India, Malaysia, Brazil) can make total effective rates prohibitive for imported vehicles.

Question 2

Excise duty?

Accepted Answer

Excise duty is a domestic tax levied on specific goods regardless of their origin — it applies to both domestic production and imports. It is commonly applied to alcohol, tobacco, fuel, gambling, and in many countries to motor vehicles (especially high-emission or high-engine-displacement vehicles). Unlike customs duty (which applies only to imports and is ad valorem — a percentage of value), excise is often specific: a fixed amount per litre of alcohol, per 1,000 cigarettes, per litre of fuel, or per kilowatt of engine power. Excise duties are in addition to customs duty and VAT. For imports, the sequence is: customs value → customs duty → excise duty → VAT (calculated on the sum of value + duty + excise). Countries with high excise on cars (India, Malaysia, Brazil) can make total effective rates prohibitive for imported vehicles.

Question 3

Excise tax?

Accepted Answer

Excise duty is a domestic tax levied on specific goods regardless of their origin — it applies to both domestic production and imports. It is commonly applied to alcohol, tobacco, fuel, gambling, and in many countries to motor vehicles (especially high-emission or high-engine-displacement vehicles). Unlike customs duty (which applies only to imports and is ad valorem — a percentage of value), excise is often specific: a fixed amount per litre of alcohol, per 1,000 cigarettes, per litre of fuel, or per kilowatt of engine power. Excise duties are in addition to customs duty and VAT. For imports, the sequence is: customs value → customs duty → excise duty → VAT (calculated on the sum of value + duty + excise). Countries with high excise on cars (India, Malaysia, Brazil) can make total effective rates prohibitive for imported vehicles.

Question 4

Customs excise?

Accepted Answer

Excise duty is a domestic tax levied on specific goods regardless of their origin — it applies to both domestic production and imports. It is commonly applied to alcohol, tobacco, fuel, gambling, and in many countries to motor vehicles (especially high-emission or high-engine-displacement vehicles). Unlike customs duty (which applies only to imports and is ad valorem — a percentage of value), excise is often specific: a fixed amount per litre of alcohol, per 1,000 cigarettes, per litre of fuel, or per kilowatt of engine power. Excise duties are in addition to customs duty and VAT. For imports, the sequence is: customs value → customs duty → excise duty → VAT (calculated on the sum of value + duty + excise). Countries with high excise on cars (India, Malaysia, Brazil) can make total effective rates prohibitive for imported vehicles.

Question 5

What is excise duty?

Accepted Answer

Excise duty is a domestic tax levied on specific goods regardless of their origin — it applies to both domestic production and imports. It is commonly applied to alcohol, tobacco, fuel, gambling, and in many countries to motor vehicles (especially high-emission or high-engine-displacement vehicles). Unlike customs duty (which applies only to imports and is ad valorem — a percentage of value), excise is often specific: a fixed amount per litre of alcohol, per 1,000 cigarettes, per litre of fuel, or per kilowatt of engine power. Excise duties are in addition to customs duty and VAT. For imports, the sequence is: customs value → customs duty → excise duty → VAT (calculated on the sum of value + duty + excise). Countries with high excise on cars (India, Malaysia, Brazil) can make total effective rates prohibitive for imported vehicles.

Excise Duty

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