A tax levied on the consumption of particular goods. These may be levied to raise government revenue, and are often levied at higher rates on goods whose consumption is believed to have adverse effects on public health, public order, or the environment. Excise duties on alcoholic drinks, tobacco, and petrol are widely used for both purposes.
It is a tax on manufacture of goods within the country. The rates of excise duty depends upon the nature of item manufactured, the nature of the manufacturing concern, and the place of ultimate sale according to which the good is put in a specific grade.