An excise or excise tax is any duty on manufactured goods which is levied at the moment of manufacture, rather than at sale. Definition of taxation pdf accijns, which is presumed to come from the Latin accensare, meaning simply “to tax”. Excise was introduced in the mid 17th century under the Puritan regime.
Excise duties or taxes continued to serve political as well as financial ends. Public safety and health, public morals, environmental protection, and national defense are all rationales for the imposition of an excise. A hateful tax levied upon commodities, and adjudged not by the common judges of property, but wretches hired by those to whom excise is paid. Monies raised through excise may be earmarked for redress of specific social costs commonly associated with the product or service on which it is levied. Tobacco tax revenues, for example, might be spent on government anti-smoking campaigns, or healthcare for cancer, heart-disease, vascular disease, lung disease, and so on. In some countries, excise is also levied on some goods for purely punitive reasons.
These are the three main targets of excise taxation in most countries around the world. Gambling licences are subject to excise in many countries today. Profits of bookmakers are subject to General Betting Duty in the United Kingdom. 5 Implementation of an excise tax on prostitution, the brothel is taxed and passed it on.
5 for each calendar day or portion thereof that the patron uses the prostitution services of that prostitute. One of the most notorious taxes in the whole of history was France’s gabelle of salt. Although that was a sales tax, rather than an excise, salt has been subject to excise in some countries, along with many other substances which would, in today’s world, seem rather unusual, such as paper, and coffee. Window tax was introduced as a form of income tax, that technically preserved the financial privacy of the individual, the rationale being that wealthier individuals would have grander homes, and hence would have more windows. Furthermore, unlike income, windows cannot be easily hidden. All of these taxes lead to avoidance behaviour that had a substantial impact on society and architecture.
People deliberately bricked up windows to avoid window tax, used much larger bricks to reduce their liability for brick tax, or bought plain paper and had it filled in later to avoid wallpaper tax. Some poor people even forced themselves to live in cold dark rooms in order to avoid paying these taxes. Newspapers were taxed in the United Kingdom from 1712 until 1853. The original tax was increased with the Stamps Act 1814, when it was stipulated at 4d per copy.
Advertisement Duty was also stipulated in the same laws and was also charged on a “per unit” basis, irrespective of the size or nature of the advertisement. Until 1833 the cost was 3s 6d, after which it was reduced to 1s 6d. An excise duty is often applied by the affixation of revenue stamps to the products being sold. One of the most noticeable examples of this is the development of the Ace of Spades as a particularly elaborate card, from the time when it was obliged to carry the stamp for playing card duty.
A government-owned monopoly – such as an alcohol monopoly – is another method of ensuring the excise is paid. The Australian Taxation Office describes an excise as “a tax levied on certain types of goods produced or manufactured in Australia. These include alcohol, tobacco and petroleum and alternative fuels”. In Australia, the meaning of “excise” is not merely academic, but has been the subject of numerous court cases.
Both the federal and provincial governments impose excise taxes on inelastic goods such as cigarettes, gasoline, alcohol, and for vehicle air conditioners. In India, the Government has produced an automatic centralised system for paying excise. With this, manufacturers can easily pay their excise online on every 5th of the following month through GAR-7. The enormous contrast between the powers of officers of the Inland Revenue, and those of Customs and Excise, initially caused several difficulties in the early life of the new organisation.
Both the federal and state governments levy excise taxes on goods such as alcohol, motor fuel, and tobacco products. The laws of the federal government and of some state governments impose excises known as the income tax. Even though federal excise taxes are geographically uniform, state excise taxes vary considerably. Local governments may also impose an excise tax. 30 per pack, which is on top of the federal excise tax and the state excise tax.
In 2011, the United States federal excise tax on gasoline was 18. Critics of excise have interpreted and described it as simply being a way for government to levy further and unnecessary taxation on the population. In some countries, such as the UK, excise has generally been limited to goods which are luxuries or a risk to health or morals, but this is not the case everywhere. In some countries, goods which are illegal are nevertheless also subject to excise, and the ground of tax evasion has subsequently been used to prosecute criminal gang leaders, when it has not been possible to prosecute the criminal activity more directly.
It has also been argued that, by taxing banned substances, some US states are able to gain additional revenues. Department is prohibited from sharing any information relating to the purchase of drug tax stamps with law enforcement or anyone else. 3c Beer revenue stamp proof single”. Samuel Johnson, A Dictionary of the English Language, Ninth Ed. Kansas Department of Revenue, Tax Types: Drug Tax Stamp. Stamp Act History Project, “Stamp Act, 1765”.