Taxes imposed on locally made goods are known as excise duties. Excise duty is a type of tax levied on goods produced within a country, such as cigarettes, alcohol, or petrol. The government imposes excise duty to increase its revenue and to discourage the consumption of harmful goods. The tax is usually included in the price of the product, so consumers do not have to pay it separately. The amount of excise duty varies depending on the type of product, and it is usually a fixed amount per unit of the product or a percentage of the price.