Commodity tax

Tax Glossary Definition

Commodity tax

Commodity Tax – A commodity tax is a levy applied to the production, sale, or consumption of specific goods—often termed excisable goods—such as fuel, alcohol, tobacco, or luxury items. The tax may be assessed either as a fixed charge per unit or as a percentage of the item’s value.

Example: Taxes imposed on petrol sales or on cigarettes represent common forms of commodity taxation.

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