excise
Enable an AI agent to recognise an excise regime, assess how it applies to a specified good or activity, and identify obligations or permitted actions supported by the applicable rules.
Research draft, second pass
A second pass drafted this model: the structure a model of this thing needs, and what is known about it in the world. The line under this one says how the second half was obtained - researched against sources, or recalled without web access, in which case nothing here was read anywhere and every claim is a lead to verify. Unreviewed either way.
Researched by: Codex + Grok
Purpose and description
Enable an AI agent to recognise an excise regime, assess how it applies to a specified good or activity, and identify obligations or permitted actions supported by the applicable rules.
A selective, usually indirect consumption tax on a legally defined, limited set of goods (classically alcohol, tobacco and energy products), assessed as a specific amount per physical unit, an ad valorem share of a defined price, or a mix of both, and charged on manufacture, extraction or release for consumption rather than as a general sales tax or a customs duty on all imports.
It can be Classify a specified good or activity against an identified excise regime and flag unresolved boundaries.; Determine whether an evidenced event creates excise liability and identify the responsible actor.; Calculate or estimate the charge using the applicable rule version, recording missing inputs and assumptions.; Evaluate whether a proposed storage, movement, release or use satisfies excise-specific conditions.; Identify potentially available reliefs and the evidence or authorisation required to claim them.; Reconcile assessed liability with declarations, payments and other evidence of discharge..
Distinguishing features
The governing instrument identifies an excise or equivalent selective duty; a narrow tax base alone does not establish that classification.
Applicability turns on specified goods or activities rather than simply every taxable sale, distinguishing the regime from a general sales tax.
An import connection does not by itself make the charge excise: the agent must distinguish an excise liability from a customs tariff liability on the same goods.
A percentage-based charge can still be excise; a physical-unit basis is not a sufficient or necessary identification test.
The charge must be distinguished from a licence fee, regulatory penalty or service charge by its stated legal basis and liability conditions.
Scope
+ The jurisdiction, authority, effective period and version of an excise regime
+ The goods or activities selected for excise and the boundaries of their classification
+ Events that create liability, determine the liable actor or make payment due
+ Tax bases, rates and adjustments needed to establish an excise amount
+ Excise-specific suspension, movement, relief and discharge conditions
- General consumption taxation, including VAT and sales tax regimes
- Customs tariffs, customs valuation and import procedures except where an excise rule depends on them
- Product composition, manufacturing operations and inventory management beyond excise-relevant evidence
- General legal instruments, legislative processes and judicial proceedings
- An organisation's complete accounts, payment processing and wider tax position
Characteristics
- Excise designation
- Designation in the governing instrument; confirmed excise, candidate equivalent, unresolved Prevents selective taxes and regulatory charges from being treated as excise solely because they look similar.
- Governing jurisdiction and authority
- Links to territorial jurisdiction, administering authority and governing instruments Establishes which rules and administrative decisions can determine applicability.
- Rule validity
- Proposed, effective, superseded, repealed or unresolved, with relevant dates Prevents a current rate or definition from being applied to an event governed by an earlier rule.
- Selected tax object
- Source-defined goods or activities, classifications, thresholds and exclusions Determines whether the object under assessment falls within the selective charge.
- Charge-triggering event
- Source-defined event, potentially involving production, import, release, supply, use or another specified occurrence Separates physical or commercial activity from the event that actually creates liability.
- Liable actor
- Actor linked to the applicable liability rule and triggering event Ownership, possession and responsibility for paying excise must not be assumed to coincide.
- Assessable base
- Rule-defined quantity or monetary value, including unit, reference conditions and valuation date where applicable Supports reproducible calculation and exposes missing measurement or valuation evidence.
- Applicable rate
- Currency per specified unit, percentage of specified value, or a source-defined combination Connects the assessed base to the correct dated charge.
- Excise treatment
- Source-defined treatment, such as suspended, exempt, chargeable or unresolved Determines whether a charge is currently enforceable and which conditions constrain further action.
- Discharge status
- Not determined, outstanding, partly discharged, discharged or disputed, supported by evidence Distinguishes a calculated obligation from an obligation that has actually been settled or otherwise extinguished.
Also called
Where this came from
wikidata · CC0 1.0
Drafted structure
Bundle to layer to finding to question, as the second pass will find it: 6 bundles · 11 layers · 18 findings · 29 questions.
Excise identity and reach Establishes which selective charge is being modelled and where its rules apply.
An agent must establish that the charge is excise and select the applicable regime before evaluating an object or event.
Legal designation
Identifies the charge through its governing sources and separates it from neighbouring charges.
Excise classification basis
Record the source-supported basis for calling this charge excise, including any uncertainty about local terminology.
- Which governing instrument designates this charge as excise or establishes the claimed equivalent? provenance
- What distinguishes this charge from a customs duty, general consumption tax, licence fee or penalty in that instrument? boundary
Territorial and temporal reach
Determines which territory and dated rule version govern an assessment.
Applicable excise regime
Record territorial coverage, effective dates and any transition provisions needed to select the operative rules.
- Which territorial provisions include or exclude the place where the relevant event occurred? boundary
- Which rule version governs that event, and what source establishes its effective date or transitional treatment? provenance
Selected objects and liability Connects the selected goods or activities to the event and actor that create an excise obligation.
A good can be within an excise category without every interaction with it immediately creating a payable charge.
Excisable classification
Captures the attributes that determine inclusion in the excise base.
Classification and exclusions
Record the definitions, thresholds and exclusions against which the actual good or activity must be tested.
- Which composition, strength, intended use, product code or activity attributes determine inclusion under this regime? definition
- Which exclusions or thresholds could place this particular good or activity outside the charge, and what evidence resolves them? boundary
Liability trigger and bearer
Separates the event creating liability from payment timing and commercial ownership.
Charge event and liable actor
Record the evidenced triggering event, the rule assigning liability and any separate payment deadline.
- Which event creates the excise liability, and does the rule distinguish that event from when payment becomes due? definition
- Which actor becomes liable under that rule, including any specified joint or substitute liability? definition
- What evidence is needed before the agent can treat the triggering event as having occurred? provenance
Excise charge determination Makes the assessed amount traceable to measured or valued inputs and the applicable rate rules.
Excise calculations can depend on product-specific units, reference conditions and rate boundaries that ordinary transaction totals do not capture.
Base measurement
Establishes the quantity or value to which the excise rate applies.
Assessable quantity or value
Record the required measurement or valuation basis, its supporting evidence and any conversion assumptions.
- Is the base a count, mass, volume, constituent quantity, energy quantity, monetary value or another specified measure? measurement
- Which reference conditions, valuation inclusions, conversions and rounding rules are required to produce the assessable base? measurement
Rate application
Selects and applies the rate structure governing the assessed event.
Dated rate and calculation
Record the applicable rate source and calculation method, including any evidenced bands, minimum charges or combined components.
- Which dated rate applies to this classification and event, and which authoritative source supports it? provenance
- How do any bands, minimums, combined specific and percentage components, or rate adjustments affect the calculated charge? measurement
Excise controls and movement Represents any regime-specific controls over holding, transporting or releasing excisable goods.
Where such controls exist, an agent needs to distinguish physical movement from a change in excise treatment and verify the conditions for each action.
Controlled holding
Captures whether goods may be held under an excise arrangement and which approvals sustain that treatment.
Holding and suspension conditions
Record whether suspension or another controlled holding arrangement exists and the conditions applicable to the goods, premises and operator.
- Does this regime provide a holding or suspension arrangement, and how does it affect liability or payment timing? definition
- Which approvals, guarantees or records must be valid before these goods may enter or remain in that arrangement? action
Movement and irregularities
Tracks the excise significance of dispatch, receipt, shortages and deviations where relevant.
Movement completion and exceptions
Record the conditions for an authorised movement and the evidence needed to resolve receipt or irregularity.
- What excise documents, actor permissions and destination conditions must be satisfied before dispatch? action
- What evidence closes the movement, and how must missing receipt, loss, shortage or diversion be assessed under the applicable rules? action
Relief and obligation discharge Determines whether excise can be reduced, recovered or treated as discharged.
Eligibility for relief, submission of a declaration and settlement of a liability are distinct determinations requiring different evidence.
Conditional relief
Captures any exemption, reduced treatment or recovery mechanism and its qualifying conditions.
Relief entitlement and retention
Record source-defined relief mechanisms without assuming that a qualifying label alone establishes entitlement.
- Which relief mechanism, if any, applies to the evidenced use, destination, actor or event, and what conditions establish eligibility? boundary
- What application, authorisation, deadline and continuing evidence are required to obtain and retain that relief? action
Declaration and settlement
Connects the excise assessment to filing duties and evidence that the obligation has been discharged.
Excise obligation closure
Record what remains to be declared or settled and distinguish filing, payment, adjustment and dispute states.
- Which declaration and payment obligations follow from this assessment, and when must each be fulfilled? action
- What evidence establishes discharge of this excise obligation, and what assessed or disputed amount remains unresolved? provenance
Evidence and external alignment What the world already says about this thing, gathered so the model can be checked against it.
A model that cannot be lined up against existing standards, identifiers and practice cannot be adopted by anyone who already uses them.
Reported evidence
Findings from the breadth pass, kept separate from the structural claims.
Kinds and varieties
Reported by the breadth pass; each item needs checking against its source before it becomes normative.
- specific (ad quantum) excise, a fixed amount per unit of volume, weight, strength or quantity
- ad valorem excise, a percentage of a defined selling or ex-factory price
- mixed or hybrid excise combining a specific and an ad valorem element, common on manufactured tobacco
- alcohol excise, volume-based (typical for beer and wine) or alcohol-content-based (typical for spirits)
- tobacco excise on cigarettes and other manufactured tobacco
- energy, hydrocarbon-oil and electricity excise
- health or 'sin' extensions such as sugar-sweetened-beverage excise
- motor-vehicle excise levied for environmental or luxury-good reasons
- Which of these kinds and varieties hold for the sense of excise this model covers, and on what evidence? provenance
Identifiers and schemes
Reported by the breadth pass; each item needs checking against its source before it becomes normative.
- Wikidata - Q159579 - Item labelled 'excise'; instance of indirect tax, subclass of consumption tax
- OECD tax classification - 5121 - Revenue Statistics heading 'Excises' under 5120 Taxes on specific goods and services
- Library of Congress Subject Headings - sh85132878 - Authorised heading recorded as 'Taxation of articles of consumption'
- GND - 4135545-3 - Deutsche Nationalbibliothek subject heading for the tax
- Dewey Decimal Classification - 343.055; 336.271 - Law of excise and public-finance treatment of excise revenue
- HMRC tax type code (DE 4/3) - numeric codes declared for goods liable to UK excise duty - Operational identifier on customs declarations, not a global code for the tax itself
- Which of these identifiers and schemes hold for the sense of excise this model covers, and on what evidence? provenance
Standards and regulation
Reported by the breadth pass; each item needs checking against its source before it becomes normative.
- Council Directive (EU) 2020/262 laying down the general arrangements for excise duty (recast) - Council of the European Union / DG TAXUD
- Council Directive 2003/96/EC restructuring the Community framework for the taxation of energy products and electricity - Council of the European Union
- Council Directives 92/83/EEC and 92/84/EEC on the harmonisation of the structures and rates of excise duty on alcohol and alcoholic beverages - Council of the European Union
- Council Directive 2011/64/EU on the structure and rates of excise duty applied to manufactured tobacco - Council of the European Union
- Decision (EU) 2020/263 on computerising the movement and surveillance of excise goods (EMCS) - Council of the European Union
- OECD Revenue Statistics classification heading 5121 Excises - OECD
- HMRC guidance 'Excise tax types, excise duty rates and supplementary guidance' (tax type codes DE 4/3) - HM Revenue & Customs, United Kingdom
- Which of these standards and regulation hold for the sense of excise this model covers, and on what evidence? provenance
Real-world use
Reported by the breadth pass; each item needs checking against its source before it becomes normative.
- Charged on alcoholic drinks, tobacco and mineral oils or transport fuels in every OECD country, usually collected by the customs or revenue agency at the factory, bonded warehouse or point of import.
- In the EU, authorised warehousekeepers move energy, alcohol and tobacco under a duty-suspension arrangement tracked by the Excise Movement and Control System until the goods are released for consumption.
- Appears in the retail price of a pack of cigarettes, a litre of petrol or a bottle of beer, often as the largest single tax wedge on those products, and is used as a health tax (WHO, World Bank) and as an environmental instrument on fuels and vehicles.
- United Kingdom importers and manufacturers declare HMRC tax type codes (DE 4/3) on goods liable to excise and pay the associated duty rates, which are reset periodically for alcohol, tobacco and hydrocarbon oil.
- Gulf Cooperation Council states introduced separate excise systems from 2017-2019 on tobacco, sugar-sweetened beverages and alcohol alongside new VATs.
- Which of these real-world use hold for the sense of excise this model covers, and on what evidence? provenance
Typical measurements
Reported by the breadth pass; each item needs checking against its source before it becomes normative.
- excise share of retail price, beer - global median about 14 (WHO, data to July 2024) - %
- excise share of retail price, spirits - global median about 22.5 (WHO, data to July 2024) - %
- excise on a 330 ml bottle of the most-sold beer - about 0.52 of a 2.47 PPP retail price worldwide (WHO 2025) - international dollar (PPP)
- ad valorem rate on a defined selling price - jurisdiction-set; OECD illustration 20 - %
- countries levying some form of excise - at least 170 - count
- Which of these typical measurements hold for the sense of excise this model covers, and on what evidence? provenance
Failure modes and hazards
Reported by the breadth pass; each item needs checking against its source before it becomes normative.
- Illicit manufacture, smuggling and counterfeit of high-tax tobacco and alcohol, which undercut both revenue and the intended health effect.
- Fraud in duty-suspension movements (diversion of goods declared as still under bond).
- Under-invoicing and trading-down when the tax is purely ad valorem.
- Erosion of the real value of unindexed specific rates, so the tax fails to keep pace with inflation or product reformulation.
- Cross-border shopping and substitution into cheaper or untaxed products when rates diverge between neighbouring jurisdictions.
- Over-complex multi-tier schedules that are hard to administer and easy to game.
- If rates are too low relative to harm, the tax does not correct the health or environmental externality it is meant to price.
- Which of these failure modes and hazards hold for the sense of excise this model covers, and on what evidence? provenance
Regional variation
Reported by the breadth pass; each item needs checking against its source before it becomes normative.
- EU law confines the harmonised category 'excise goods' to energy products and electricity, alcohol, and manufactured tobacco; member states may tax other products but must not recreate border formalities.
- The United Kingdom still uses HMRC excise tax-type codes and duty rates for the same core goods; Northern Ireland remains tied to EU movement rules under the Withdrawal Agreement.
- In United States usage 'excise tax' is a broader federal category that can include certain retail and service taxes, not only inland duties on alcohol, tobacco and fuel.
- French accise / droits d'accise, Spanish impuestos especiales, German Verbrauchsteuer and Chinese 选择性销售税 / 货物税 name the same family of selective consumption taxes with different historical boundaries.
- GCC states (Bahrain, Saudi Arabia, UAE from 2017; Qatar and Oman from 2019) adopted relatively new, narrow excise lists (tobacco, sugar-sweetened beverages, alcohol) rather than the older European energy-and-alcohol core.
- The older common-law contrast - excise on inland manufacture versus customs on imports - still shapes naming in English-speaking jurisdictions even though modern excise is also collected at the border on imported excisable goods.
- Which of these regional variation hold for the sense of excise this model covers, and on what evidence? provenance
Neighbouring kinds and how to tell them apart
Reported by the breadth pass; each item needs checking against its source before it becomes normative.
- value-added tax or general sales tax - VAT/GST is a broad-based tax on most goods and services, usually creditable through the supply chain; excise is product-specific, typically not credited, and often charged in addition to VAT on the same good.
- customs duty (tariff) - A customs duty is triggered by crossing the customs border and applies by tariff heading; an excise is triggered by domestic production or release for consumption of a named product and is also charged on equivalent home-produced goods.
- export tax - An export tax is levied on goods leaving the territory; excise is a tax on domestic consumption and is usually remitted or not charged on exports.
- fiscal-monopoly profit (OECD 5122) - A state retail or wholesale monopoly can extract a similar wedge as a markup; OECD classification treats that profit as distinct from a statutory excise (5121).
- carbon tax or environmental levy - A carbon tax is defined on greenhouse-gas content or emissions; it may be implemented as an energy excise, but the legal base and stated purpose differ, and not every fuel excise is a carbon tax.
- the verb 'excise' (to cut out) - Homonym from Latin excisus 'cut out'; the tax noun comes via Dutch excijs / Old French acceis from a census/assessment root, not from surgical or editorial removal.
- Which of these neighbouring kinds and how to tell them apart hold for the sense of excise this model covers, and on what evidence? provenance
Sources
- excise (Q159579) - Wikidata identity as an indirect consumption tax, English gloss as a goods tax at manufacture, aliases, and authority identifiers (LCSH, GND, Dewey)
- Consumption Tax Trends 2022 - OECD split of consumption taxes into general taxes (VAT/sales) and taxes on specific goods (excises); ad quantum versus ad valorem design; alcohol, mineral oils and tobacco as the three principal OECD product groups
- Revenue Statistics 2024 - Official OECD heading 5121 definition of excises as product-specific taxes on a predefined limited range of goods, and the exclusion of general sales taxes, fiscal-monopoly profits, customs duties and export taxes
- Council Directive (EU) 2020/262 laying down the general arrangements for excise duty (recast) - EU legal definition of excise goods (energy, alcohol, manufactured tobacco), chargeability, duty-suspension arrangements, and computerised movement control
- Excise Taxes (Chapter 7), in a volume on tax policy design - IMF account of why modern excises target a few goods with high rates to correct externalities and internalities, typical product set, and GCC introduction of excise systems in 2017-2019
- Global report on the use of alcohol taxes 2025 - Observed alcohol-excise designs (volume-based versus alcohol-content-based) and measured global median excise shares of retail price for beer and spirits
- Excise tax types, excise duty rates and supplementary guidance - United Kingdom operational list of goods liable to excise duty, HMRC tax type codes (DE 4/3), and rate-setting practice for alcohol, tobacco, hydrocarbon oil and related levies
- Global Excise Tax Policy: Application and Trends - Worldwide use (at least 170 countries), points of imposition (manufacture, wholesale, retail), and the specific versus ad valorem structural split
What the second pass must settle
- Does the registry intend excise as a tax or duty regime, an individual charge, or another meaning of the word, given the absent definition and INF.KNW placement?
- Does an existing Vercy world model already own this concept, requiring the registry entry to link to it instead of creating a separate publication?
- Which authoritative sources should establish the cross-jurisdiction boundary between excise and other selective taxes or duties?
- Which jurisdictions and excise categories must the first researched model cover, including whether activity-based excises are required?
- Which proposed control and relief layers are supported by those regimes, which should be omitted, and which excise-specific mechanisms are still missing?