Excise tax is typically collected from which entity?

Excise tax is a specific type of tax applied to particular goods and services, such as alcohol, tobacco, fuel, and various luxury items. It is typically levied on the seller or retailer of these products rather than the end consumer directly at the point of sale. This means that the seller incorporates the cost of the excise tax into the price of the product and collects it from consumers when they purchase the item, but the responsibility for remitting the tax to the government lies with the retailers or sellers.

Furthermore, the structure of excise tax allows for regulation and control over certain goods deemed harmful or non-essential, which reinforces the role of sellers in this tax process. By taxing the sellers, the government can ensure they comply with tax regulations and contribute to the revenue system based on the sales of these specific items.