Excise duty is a crucial component of any nation's tax system, serving as a significant source of revenue for the government while also aiding in controlling consumption and regulating specific industries. This essay aims to delve into the reasons that make excise duty a necessity, discussing its various aspects and implications. First and foremost, excise duty serves as a substantial source of income for the government. It is levied on goods that are considered luxury items or those that may have a negative impact on public health or the environment. This tax helps to generate revenue, which can be utilized for public welfare projects, infrastructure development, and other essential services. For instance, the revenue generated from excise duties on tobacco and alcohol can be allocated to healthcare programs, education, and other social initiatives. Secondly, excise duty plays a vital role in controlling consumption, particularly in the case of products that have adverse effects o...