Gambling, alcohol, and air travel are all charged in this image.

Taxes / Excise Tax / What is excise tax?

Excise tax is a levy on goods and services.

Gambling, alcohol, and air travel are all subject to taxation.

Taxes / Excise Tax / What is excise tax?

Excise tax: what is it and how does it work?

A primary goal of excise taxes is to raise the price of a certain item in order to discourage consumers from purchasing it.

Swedish ingenuity has spawned the following excise taxes:

VAT on alcoholic beverages

money that might have been used

VAT on trash incineration

the tax on insecticides

including a charge for energy. Taxes on carbon dioxide and sulfuric acid emissions. Other names for this levy include the “gasoline tax,” “diesel tax,” and “electricity tax.”

VAT on flights

the tax on group life insurance policies

Toxicology tax

duty-free natural stone sand and gravel

Tax on nicotine

excise tax on plastic carrying bags. It is often referred to as the “plastic bag tax.”

tax on advertising

There is a tax levied on gambling winning

Tax on tobacco products

automobile third-party liability insurance premiums are subject to a special levy.

Taxing a region to pay for the negative externalities of the industry, such as environmental difficulties, is a Pigouvian tax in certain situations. In this category include taxes on waste incineration, taxes on pesticides and taxes on the use of energy as well as taxes on aircraft, chemicals, and natural gravel. According to economic theory, the tax should be so high that it raises the cost of the activity to the level of the cost to society. It’s not only about making up for the harm that energy use does; it’s also about bringing in money for the government. If the main goal of taxation were to offset the negative externalities, then many major energy-intensive sectors like steel mills and computer data centres would be exempt from paying their fair share.

Excessive use of alcohol, nicotine, gambling, and cigarettes are all targets for excise taxes imposed by the government in an effort to curb the problem. If you want to prevent widespread smuggling and ensure that just a few law-abiding persons pay the tax, you must base your appropriate tax rate on the cost of the commodity in other nations.

There are excise taxes in which the state wishes to transfer the tax burden for different reasons, such as the tax on group life insurance, because of tax technicalities.

In order to compensate for the danger of harm, we impose an excise tax on vehicle insurance premiums. Consider if it’s appropriate to charge a person for a location where there’s a higher danger of damage, particularly if the cost varies between urban and rural areas.

To placate the EU, therefore, an excise charge on plastic carrying bags may be included.

A tax that you don’t comprehend as an advertisement tax. It also seemed to miss the Riksdag’s call for abolition, made public in 2002, which the government has just now responded to in 2021 with actual legislation.

Can’t we talk about excise taxes more?

Gambling, alcohol, and air travel are all subject to taxation.

Is the incline where it should be? They’re effective, right? Is it possible that excise charges be detrimental in certain cases? Streamlining the tax code could be possible.

The fee on plastic bags is a charge that should be debated again. Why did we need to decrease the usage of plastic bags in Sweden since they are excellent garbage bags and do not wind up in nature or the sea? Why did we not do more to resist the EU?

The so-called “energy tax” is a hot topic among politicians, especially in light of recent price spikes associated with days when it is chilly and windless yet we have deactivated half of the world’s nuclear reactors. Ordinary users will pay 35.6 öre per kWh in power taxes in 2021, which will rise to 44.5 öre per kWh with VAT. Excise duty is taxed, hence VAT is added to it. It will rise to 45 öre per kWh with VAT next year, which is a little increase from this year. The power network business now collects the tax. Additionally, you are charged a 25 percent VAT fee by the power trading firm.

Phillip Armstrong

The author Phillip Armstrong