What are two reasons the government might choose to levy an excise tax on a product? drag word(s) below to fill in the blank(s) in the passage. the government might levy an excise tax on a product if it wants to collect – from the purchase of that particular good or service. the government would prefer to tax goods with a –demand. the government might also tax a product to incentivize consumers to –. if taxes are too high on a certain good or service, many consumers will – that good.