What Is A Tax On A Perfume An Example Of; Income Tax, Excise Tax, Property Tax, Estate Tax, Or Stock Transfer Tax?

The tax on a perfume is the value added tax or stock transfer tax.

Add Comment

Report

The tax levied on a perfume is considered under excise tax. An excise tax is defined as a sales tax that is imposed on the manufacture, purchase, sale and consumption of a definite type of commodity. The excise taxes levied on perfumes are known as luxury tax. This tax is levied on products that fall under the category of luxuries rather than on necessities and essential goods and services.

Jewellery is another object on which luxury tax is charged. It is a tariff that is actually indicted on the rich class and has been in existence since the late 18th century. Nowadays luxury tax includes any goods with low demand elasticity and therefore tobacco and beer are also included under luxury tax.

Add Comment

Report