Question

What is a tax on the production or sale of a good called? revenue tax subsidy income tax excise tax

Answer 1

Answer:

The tax on the production or sale of a good is called excise tax.

Explanation:

The taxes on specific consumptions, also called excise taxes, are a set of indirect taxes, which selectively tax the consumption of certain goods.

The rationale for these taxes is that the consumption tax cannot be entrusted exclusively to a general tax such as VAT (value added or added tax) that indiscriminately taxes the consumption of all goods and services, regardless of the type of goods that are treated, but the existence of other taxes that selectively tax the consumption of specific goods is necessary. Excise taxes thus fulfill a double function of fundraising for the Public Treasury and at the same time serve as an instrument for certain policies, forming part of the health, energy, etc. policies of a country.

Answer 2

The answer would be excise tax