How are sales taxes and excise taxe alike?

Answer 1

Sales taxes and excise taxes are both forms of indirect taxation imposed by governments to generate revenue. They are collected from consumers at the point of purchase, meaning businesses act as intermediaries in collecting these taxes. Both types of taxes can influence consumer behavior, as they affect the final price of goods and services. However, while sales taxes are typically applied broadly to a wide range of goods and services, excise taxes are usually levied on specific products, such as alcohol, tobacco, and fuel.