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| Home » Types of Taxes » Excises |
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Excises |
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Excises are the major types of taxes that are to be paid to the government of a country. The basis of excise tax is on the products that are made inside the country. Excises are sometimes also called excise duty. Customs department of the government looks after whether all the companies producing goods outside the country are paying tax properly. So, in the case of excises it is just the opposite. That is why the excise duty department is just the complementary opposite side of the customs department in a country.
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Excises are great source of revenue earning for the government of a country. Excises are not related to any kind of property tax and other assets tax that are paid to the government. As far as the definition of excises is concerned, this is clearly a tax. The structure and the rules and regulations that are followed in case of excises are just like other taxes. Excises are taken on manufacture and sale of a product that is made inside the country. There are also excises taken as a charge for the business license or charter.
Different countries follow various rules for excise duty. As for United States of America, excises do not include the property taxes, or any kind of capitation. Her Majesty's Customs and Excise was the rule that has been followed till the year 2005 in United Kingdom. Later on when this system was obliterated, Value Added Tax was introduced in the country. Excises in United Kingdom play huge roles in import and export in this country and, above all, excises are included among direct tax to the government in this country.
As for in India excise tax is taken from the companies who produce goods inside the country. This tax in India was previously called Central Excise Duty. Later on the name was changed to Central Value Added Tax. This tax is a rich source of revenue income for Indian government. The rate of value added tax is fixed during the annual budget at the beginning of every financial year.
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