Excise/ˈeksaɪz/ Definition 1 of 3Pro Tip 1/3Goods and Services 'Excise' is often tied to specific products like alcohol or tobacco, not all purchases. The government increased the excise on tobacco products. Pro Tip 2/3Internal Tax 'Excise' is a tax within a country rather than on goods coming in from abroad. Small businesses sometimes struggle with excise calculations. Pro Tip 3/3Government Revenue 'Excise' helps governments to raise revenue, often to fund specific programs. Fuel excise is often used for road maintenance.