Excise tax on fuel helps out with the highway trust fund. I would like to give you the complete lowdown on excise taxes in the USA, but the volume of information is enormous.
Excise taxes are differentiated from customs duty in that they are inland taxes and not border taxes.
Excise taxes are normally higher than a sales tax or a Value Added Tax and are included in the price of the item sold.
They are also added to the item although other taxes such as a Value Added Tax or a sales tax is imposed, as well.
Excise taxes are imposed in an enormously varied way and seem to be unpredictable whether or not something could have an excise tax on it.
This is a riot!
Here is another one:
Sales to Indian tribal governments, but only if the transaction involves the exercise of an essential tribal government function.
Sales to a nonprofit educational organization for its exclusive use.
If you are the United Nations, you are exempt from paying excise for official use.
If you are interested in specifics and have the time on your hands to read the bulk of info, here it is straight from the horses mouth.