Excise

Okay kiddo, so let me tell you about excise. Excise is a fancy word that means a tax that is put on specific goods that are being produced or sold in a country. It's like when your parents buy you a toy and they have to pay some extra money for it because of the tax.

But do you know why we have to pay an excise tax? Well, it's because the government uses that money to help pay for things like roads, schools, hospitals, and other important things that we all need as a community. It's like when your parents use the money they earn from their jobs to buy things for the family.

So when a company makes or sells things like gasoline, cigarettes, alcohol, or even some types of food, they have to pay an excise tax on it. And that extra money that they pay, they usually pass it on to the customers and charge them a little more for those products.

But don't worry, sometimes the government adds some specific rules to excise taxes to help protect people's health or the environment. For example, they might make an excise tax on cigarettes higher than other products because smoking can be very harmful to people's health.

So that, in a nutshell, is what excise is all about. It's a tax on specific things that companies make or sell, and that money helps to pay for important things that we all need.