I am the author again. What I understand is that they just need money for the treasury and whether they will collect it through income tax, VAT or excise is all the same. But if they say that they raise the total income tax from 10 to 20%, then many people will refuse to vote for this party and will hide income, and with the excise tax they twist it, as if it were for ecology, for health and I don't know its what and people still take it a little softer. And the price of fuels constantly varies, so that from a psychological point of view. we don't notice it that much. Just when the excise tax is raised, we say to ourselves "oh, he must have raised the price of oil again, something has happened" and so the work becomes a little quiet, which can't happen with VAT and DOD, because then everyone will get angry, the media will explode and the party's rating will collapse. Besides, you can hide your income relatively easily, if you do not agree with the tax, but you will not pay the excise tax, you will pay it when you buy the fuel and the state collects it immediately and with a higher collection rate. Ie the trick is to collect the tax in the easiest, most efficient and fastest way and to have a "good reason" in front of the people so that the sheep do not roar too much. And then what the money will go for and whether it will be for what they said are details. Did I understand correctly? Obviously yes. Only one thing I still do not understand. To people, when you tell them that you are collecting money for ecology, why no one asks, if I pay 10% more excise duty, how much cleaner my air will become. That alone amazes me. Because think that money does not clean the air. It cleans with filters, with more efficient engines, etc., but these are things that have nothing to do with excises, and you just pay them when you buy the product / service, because in their price this is calculated, because it is a cost for the manufacturer. And to pay for it and for someone to clean my already polluted air, I don't understand. It's not like paying someone to clean up my trash in the yard.
1 thehindu answered
excises = taxes, the treasury is filled. Otherwise there will be no money ....