Excise duties are levied on the production of goods. This means that the tax is imposed on the manufacture or production of certain goods within a country. Excise duties are indirect taxes, meaning that they are not directly paid by the consumer but are included in the price of the goods.

Explanation:
1. Definition of excise duties:
- Excise duties are taxes imposed by the government on the production, sale, or use of specific goods or services.
- They are typically levied on goods that are considered harmful to individuals or the environment, such as tobacco, alcohol, petroleum products, and certain luxury items.

2. Focus on production:
- The key point to note is that excise duties are primarily focused on the production of goods.
- This means that the tax is imposed at the point of manufacture or production, rather than at the point of sale or consumption.

3. Purpose of excise duties:
- Excise duties serve multiple purposes, such as:
- Generating revenue for the government
- Discouraging the consumption of harmful or luxury goods
- Controlling the production and distribution of certain goods
- Promoting public health and safety

4. Examples of excise duties:
- Excise duties can be imposed on a wide range of goods, including:
- Tobacco products: Cigarettes, cigars, and other tobacco-related products.
- Alcoholic beverages: Beer, wine, spirits, and other alcoholic drinks.
- Petroleum products: Gasoline, diesel, and other fuels.
- Luxury goods: High-end cars, jewelry, and other luxury items.

5. Collection of excise duties:
- Excise duties are collected by the government through various mechanisms, such as:
- Licensing and registration of producers
- Monitoring and inspection of production facilities
- Documentation and reporting requirements
- Payment of taxes based on the quantity or value of goods produced

In conclusion, excise duties are levied on the production of goods as a means of generating revenue for the government, discouraging the consumption of harmful goods, and controlling the distribution of certain goods. These taxes are imposed at the point of manufacture or production and are included in the price of the goods.