Quick Reads
/
Details
Dec 18, 2024
How do Maryland's excise taxes on fuel, tobacco, and alcohol impact consumer behavior and state revenue?
Maryland’s excise taxes on fuel, tobacco, and alcohol significantly impact both consumer behavior and state revenue. The motor fuel tax, approximately 36.1 cents per gallon, increases the cost of gasoline, potentially discouraging excessive fuel consumption and promoting energy efficiency. The high cigarette tax of $3.75 per pack of 20 and a 15% tax on cigars discourage smoking, contributing to public health goals by reducing tobacco use. Excise taxes on alcohol—$1.50 per gallon for distilled spirits, $0.40 per gallon for wine, and $0.09 per gallon for beer—raise the cost of alcoholic beverages, which can decrease consumption and support state revenue. These taxes generate substantial revenue for the state, funding public services and infrastructure, while also serving as a regulatory tool to influence consumer choices towards healthier and more sustainable behaviors.



