Excise duties are paid on goods that are?

A. imported into the country
B. manufactured within the country
C. exported to other countries
D. kept in bonded warehouse

Correct Answer:

Option B – manufactured within the country

Explanation

Excises are often associated with customs duties (which are levied on pre-existing goods when they cross a designated border in a specific direction); customs duties are levied on goods which come into existence – as taxable items – at the border, while excise is levied on goods which came into existence inland. That is to say, An excise duty is a type of tax charged on goods produced within the country (as opposed to customs duties, charged on goods from outside the country).