Friday, March 27, 2020

Why do they Tax the Tax on Cigarettes?

Ulrike Hert: That means you are paying sales tax on the retail price.

Luke Gacusan: May be to discourage the consumption or to improve Govt. revenue.

Clemente Schoeck: Many items that you buy have "hidden" excise taxes built in to the shelf price. Sales taxes are collected on the shelf price of the item, including the excises taxes. Tobacco excise taxes are just higher than most other excise taxes and are more well-known, but you are paying a tax on a tax on many things that you buy.

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