Question

What kind of tax is levied on products like cigarettes?

Answer 1

The tax levied on products like cigarettes is typically referred to as an "excise tax." Excise taxes are specific taxes imposed on certain goods, often to discourage their consumption due to health or social concerns. In the case of cigarettes, these taxes are intended to reduce smoking rates and generate revenue for public health programs. The rate can vary by country, state, or municipality. In addition to excise taxes, there may also be sales taxes applied to tobacco products.