Which tax is levied on goods like tobacco?

The correct answer is excise tax. This tax is specifically designed to be imposed on certain goods and services, particularly those considered to be non-essential or potentially harmful, such as tobacco, alcohol, and fuel. Excise taxes are typically included in the price of the product and are aimed at discouraging consumption by making these goods more expensive. This approach is often used as a public health measure to reduce smoking rates and minimize tobacco-related illnesses.

Sales tax, while also applicable to goods, is generally levied on a broader range of items sold within a state or locality and does not specifically target harmful products. Capital gains tax pertains to the profit from the sale of assets or investments, unrelated to the consumption of goods. Estate tax is a tax on the value of a deceased person's estate and does not apply to goods like tobacco. Therefore, excise tax is the most appropriate answer regarding taxation on tobacco products.