What does 'excise duty' apply to?

Excise duty specifically applies to certain goods that are deemed as having a higher impact on public health or the environment, or those that can generate significant revenue for the government. These goods include alcohol, tobacco, and fuel, among others. The rationale behind imposing excise duty on these specific products is often tied to their consumption levels, potential harm they might cause to society, and to discourage excessive use.

This targeted application of excise duty helps manage consumption patterns and contributes to public welfare by potentially reducing negative externalities associated with these products. It's important to note that while excise duty applies to specific categories, it does not broadly encompass all imported goods, all goods sold within the country, or digital goods and online services, which have their own tax treatments and regulations.