The correct answer is: A) Alcohol and fuel.
Excise duty is a tax levied on certain goods, such as alcohol and fuel. It is a type of indirect tax, which means that it is paid by the consumer when they purchase the goods, but the tax is ultimately borne by the producer. Excise duty is used to raise revenue for the government and to discourage the consumption of certain goods.
Alcohol and fuel are often subject to excise duty because they are considered to be luxury goods or goods that are harmful to health. The tax on alcohol is designed to discourage people from drinking too much, while the tax on fuel is designed to reduce pollution and conserve energy.
Agricultural produce, basic necessities, and imported goods are not typically subject to excise duty. This is because these goods are considered to be essential and the government does not want to discourage their consumption.
In some countries, excise duty is also levied on services, such as gambling and insurance. However, this is less common than excise duty on goods.