excise tax(redirected from Excise Duties)
Also found in: Dictionary, Thesaurus, Medical, Legal, Encyclopedia.
Related to Excise Duties: excise tax, Corporate tax, sales tax, Value added tax
Federal or state tax placed on the sale or manufacture of a commodity, typically a luxury item e.g., alcohol.
A tax on the manufacture or sale of a good or service over and above all other taxes paid on it. For example, a person may owe sales tax on the purchase of tobacco, but the state may also levy an excise tax on top of it. Likewise, one may owe both income taxes and excise taxes on a premature distribution of an IRA. See also: Sin tax.
A tax on the manufacture, purchase, or sale of a good or service. The tax may be based on the number of units or on value. Compare consumption tax.