TAXES LEVIED ON LOCALLY MANUFACTURED GOODS ARE CALLED

• A. custom duties
• B. excise duties ✓
• C. purchase tax
• D. sales tax
• E. VAT

The answer to the question is: B. excise duties

Excise duties are taxes imposed on goods produced domestically within a country. These taxes are typically levied on specific goods at the point of manufacture, rather than at the point of sale. Excise duties are often used by governments as a way to raise revenue and to discourage the consumption of certain goods, such as alcohol, tobacco, and fuel.

Unlike sales tax or value-added tax (VAT), which are generally applied at the point of sale to the end consumer, excise duties are imposed on the manufacturer or producer of the goods. This means that the cost of the excise duty is often included in the price of the product and passed on to the consumer.

Excise duties can vary widely depending on the type of goods being produced and the country in which they are manufactured. Governments may choose to impose higher excise duties on goods that are considered harmful or luxury items, in an effort to reduce consumption or raise additional revenue.

In summary, taxes levied on locally manufactured goods are called excise duties.