How is an excise tax different from a sales tax? An excise tax is not deductible. An excise tax applies to specific products. An excise tax applies only to imported goods. An excise taxis an indirect tax.

excise tax is a tax that is levied on the sale of specific goods and services, such as alcohol, tobacco, and gasoline. It is typically included in the price of the product and is paid by the consumer when they purchase the product. An excise tax is not deductible, meaning that it cannot be claimed as a deduction on an individual's tax return.<br /><br />On the other hand, a sales tax is a tax that is levied on the sale of all goods and services, not just specific ones. It is typically a percentage of the purchase price and is collected by the seller and passed on to the consumer. A sales tax is also an indirect tax, meaning that it is collected by an intermediary, such as a retailer, and passed on to the consumer.<br /><br />In summary, the main difference between an excise tax and a sales tax is that an excise tax applies to specific products, while a sales tax applies to all goods and services.