What type of tax is levied on specific goods, such as tobacco?

An excise tax is a form of tax imposed specifically on certain goods and services, targeting items such as tobacco, alcohol, and fuel. These taxes are usually included in the price of the product and are intended to discourage consumption of those goods for health or environmental reasons, while also generating revenue for governments.

Excise taxes differ from sales taxes, which are levied on a broader range of goods and services during the sale to consumers. Income tax pertains to the earnings of individuals or companies, and property tax is charged based on the value of real estate ownership. The specificity of the excise tax makes it a unique tool for addressing particular policy objectives, making it the correct choice for this question.