Taxes levied on locally manufactured goods are called

Step 1: Analyze the question The question asks for the name of the tax placed on goods that are manufactured locally (within the country), as opposed to goods brought in from abroad.

Step 2: Explain the concepts

• Custom duties: taxes on goods imported (or sometimes exported) across the border. They are not on local goods.
• Excise duties: taxes on goods produced and manufactured within the country, such as locally made cigarettes, beer, and soft drinks.
• Purchase tax: a tax on goods bought by the consumer, usually at wholesale or retail level. It is not specific to local manufacture.
• Sales tax: a general tax on the sale of goods and services, regardless of where they were made.
• VAT (Value Added Tax): a consumption tax on the value added at each stage of production and distribution, applied to both local and imported goods.

Step 3: Match to the question The key phrase is "locally manufactured goods". The tax that targets goods produced within the country is the excise duty.

Step 4: Answer The correct option is B. excise duties.

Tip: Remember the pairing "Excise = Inside, Custom = Coming in." Excise duty is on goods made inside the country, while customs duty is on goods crossing the border. In NECO, WASSCE, and JAMB Economics, this is a frequently tested distinction.