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