What is Excise Tax and Why do we have to pay Luxury Tax?

Stick with news about tax. Today, we are going to inform you more about tax. Most people might have heard about “Luxury Tax”. Those who still have no idea what luxury tax is, ACU will tell you about how luxury tax affects manufacturers, importers, a service establishment operator, and those who have to pay tax. Also, let’s take a look at what luxury goods and services are.

What is Excise Tax?

a manufacturer of goods and services
an importer of goods
a service establishment operator
a person liable to pay taxes

Goods and services charged for Excise Tax

Oil and oil products
Electrical appliances, especially air conditioners and chandeliers made of crystal glass.
Vehicles
Beverages
Crystal glass and other crystals.
A car or bus with a seating capacity of less than 10 persons
Perfumes, perfume concentrate and fragrance oil.
Liquor
Tobacco
Playing Card
Battery
Motocycles
Marble and granite
yachts and water vehicles
Service facilities such as horse racing and golf courses.

When to pay Excise Tax?

1.Goods produced within a kingdom which can be divided into 2 cases.

Tax is required when bringing out goods stored in a bonded warehouse under the Customs Act.
When an entrepreneur takes goods out of an industrial factory.

Imported goods: It is liable to pay taxes on imported goods and when bringing out goods stored in a bonded warehouse.
Services: Tax liability arises when the services are paid and when the VAT liability arises, whether in whole or in part.
Engine modification case: Will be paid only when the modification is over.