Retail selling price calculation

The excise price (tax base, before tax is added) of the excisable goods (such as tobacco, carbonated drinks & energy drinks) is determined by following calculation:

Excise price is higher of:

  1) The price stated in a list published by FTA

  2) Designated Retail Selling Price (RSP) of the excise goods, (higher of)

              – The recommended selling price (it is the selling price to the consumer/customer)

              – Average retail selling price of the goods in the market

Average retail selling price can be calculated by following few steps:

  • 1) Identify the different retail selling price of excise goods
  • 2)Deduct excise tax
  • 3)Multiply the total units sold by each RSP to determine the total revenue
  • 4)Divide the total revenues in the market by the total units sold
  • 5)Multiply by the applicable excise tax rate
  • 6)Add the resulting figures from 4) & 5) to get average retail selling price

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