An excise tax is a type of tax imposed on specific goods and services, often included in the price of the product. Common items subject to excise taxes include alcohol, tobacco, and fuel. These taxes are typically levied by the government to generate revenue and can also be used to discourage the consumption of certain products. Excise taxes differ from sales taxes, which are applied to a broader range of goods and services. The rates for excise taxes can vary based on the product and may be calculated as a fixed amount per unit or as a percentage of the price.