What type of transaction would incur excise duty?

Excise duty is a specific type of tax imposed on certain goods that are considered to have implications for health, safety, or the environment. These goods typically include products such as alcohol, tobacco, and fuel, which are directly regulated due to their potential impact on public health and the environment.

When a transaction involves these specific goods, it triggers the liability for excise duty as part of their sale or distribution. This is fundamentally different from transactions involving food and beverages, which generally do not attract excise duty unless they fall under special categories (like alcoholic beverages), or domestic services and electronic goods, which are typically not subject to such duties. Thus, the correct option clearly identifies transactions that are explicitly designated to incur excise duties, aligning with the broader regulatory framework designed to manage consumption in sectors that can affect public policy objectives.