A tax paid on goods manufactured and consumed in your country is called

Assessment: JAMB UTME - Commerce - 2024 Subject: Commerce

Question 1 Report

A tax paid on goods manufactured and consumed in your country is called
Answer Details

The type of tax that is paid on goods that are manufactured and consumed within a country is called excise duty.


Excise duty is essentially a tax on the manufacturers of certain goods and products within the country. It is typically levied on goods that are considered either luxurious or harmful if over-consumed, such as cigarettes, alcohol, or fuel. The government imposes this tax to either limit the consumption of these goods, to increase government revenue, or both.


This tax is different from custom duty or income tax. Custom duty is charged on goods that are imported into a country, whereas income tax is charged on individuals' or entities' earnings.

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