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Visit africa for Excise taxes are narrowly based”they apply to a relatively limited number of consumer purchases. Excise taxes are usually not major revenue raisers, but are instead used either to discourage socially undesirable behaviors (cigarette and alcohol taxes), or to approximate user fees (gasoline taxes). Luxury taxes are similarly applied to a relatively narrow range of goods, usually to indirectly tax the wealthy. Tariffs on imports originated as essentially luxury taxes, since only the well-off could afford imported products, but are now used primarily to protect domestic producers from foreign competition. Sales taxes and value added taxes are broadly based, although exemptions on food, housing, medical care, and other essentials are common. Many sales taxes also exempt a wide range of services. A sales tax is collected from the purchaser, added on to the purchase price at the time of sale, whereas a VAT is collected from the producer of the good and the producer’s suppliers, and then incorporated into the sale price. Visit africa 2016.

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