Truck operators pay excise taxes to use federal highways. Excise taxes might be annoying to consumers, but they're important for the federal government. In addition to income taxes, excise taxes account for a portion of the revenue on which the federal government relies.

What is the purpose of an excise tax?

Excise taxes are taxes required on specific goods or services like fuel, tobacco, and alcohol. Excise taxes are primarily taxes that must be paid by businesses, usually increasing prices for consumers indirectly.

Do I have to pay excise taxes?

Excise taxes are independent of income taxes. Often, the retailer, manufacturer or importer must pay the excise tax to the IRS and file the Form 720. They may pass the cost of the excise tax on to the buyer.