World View of Excise

Excise is an indirect tax that is levied on certain goods or products, such as alcohol, tobacco, fuel and certain luxury goods.

Excise tax is normally applied at the point of production or importation of the goods in question. The purpose of an excise tax is typically to regulate or discourage the use of certain products with the intention to reduce their consumption and promote a healthier lifestyle, or to generate revenue for the government.

The excise tax is usually calculated as a fixed amount per unit of the good, or as a percentage of its value. The collection and administration of excise tax is typically the responsibility of the national government.

In a nutshell, excise duty is applied on specific goods and services that are deemed harmful or luxurious.

Excise tax is applied in many countries, and it can vary greatly in terms of what goods and services are taxed and at what rate. Below is a high-level summary of the application of excise tax in certain countries:

·??????The United States

o??Excise tax is levied on items such as tobacco products, alcohol and gasoline.

·??????The European Union

o??Excise tax is applied to a broader range of goods and services, including energy products, alcohol and tobacco.

·??????Australia

o??Excise tax is levied on a range of items, including alcohol, tobacco and fuel.

·??????India

o??Excise tax is applied to a range of goods, including petroleum products, tobacco and alcohol.

·??????The United Arab Emirates

o??Excise tax is imposed on specific goods including carbonated drinks, energy drinks, tobacco products and electronic smoking devices.

·??????Africa

o??The application of excise tax varies from country to country. Some countries have a well-established excise tax system (for example, South Africa, Egypt, Morocco, Tunisia and Kenya), while others are still in the process of developing one. In general, excise tax in Africa is imposed on a wide range of goods including alcohol, tobacco products, fuels and luxury items.

·??????South Africa

o??Excise tax is imposed on specific goods and services. Some of the products that are subject to excise tax include alcoholic beverages, tobacco products, fuel and certain luxury goods.

Will excise tax change going forward?

It is difficult to predict the exact future model for excise tax. However, it seems likely that the future of excise tax will be shaped by a combination of technological advancements (using technology in the administration and enforcement of excise tax), regional economic integration (shift towards harmonisation of excise tax regimes within regional economic blocs) and public policy consideration (addressing public health and environmental concerns).

Ronnie van Rooyen (LLM Maritime Law and MPhil Maritime Studies).