The tax levied on locally produced goods is called "excise duty." This is a tax that is applied to the production or sale of certain goods within a country. It is often used to discourage the consumption of goods that are considered harmful or luxury items. For example, excise duty can be applied to tobacco products, alcohol, and luxury goods like jewelry or expensive cars. The tax is typically included in the price of the goods, and is paid by the manufacturer or seller of the product. The money collected from excise duty goes into the government's general revenue, which can be used for public services like healthcare, education, and infrastructure.