Question

How is an exercise tax different from a sales tax ?

Answer 1

Exercise taxes are custom, but sales taxes are required.

Answer 2

Answer:

An excise tax is charged on the manufacturing of a commodity, whereas, a sales tax is charged on the sales of the same commodity.

Explanation:

An excise tax can be called the primary tax that is levied right at the stage of production. This tax has to be paid by the one who is responsible for the production of the commodity. This tax varies according to the volume of the product, range of product, and certain products.

On the other hand, sales tax is generally the last tax that is charged on the commodity. It has to be paid by the final customer of the commodity. This tax includes wholesale tax, manufacture tax, excise tax, VAT, and so on.