An excise tax is a type of tax imposed on specific goods and services, often included in the price of the product. Common examples include taxes on alcohol, tobacco, and fuel. These taxes are usually levied by the government to generate revenue and can also be used to discourage the consumption of certain products. Unlike sales tax, which is applied to a wide range of goods, excise taxes target particular items. The rates can vary based on the product and are often calculated per unit, such as per gallon of gasoline or per pack of cigarettes.