Difference Between Excise Duty and Custom Duty
There are many taxes that a local government collects from people running their businesses or doing service in that country. There taxes are collected to meet the expenses incurred by the government in developing infrastructure and providing basic necessities to its citizens. These taxes are of two types direct and indirect taxes.
Two types of indirect taxes are excise duty and custom duty. Excise duty is collected on the goods produced by a manufacturer that are to be sold in that particular country.
Custom duty is levied on the goods that are imported from other country and are meant to be sold in the country. Both of these taxes are indirect taxes as they are passed on to the consumer by adding them in the costing.
