1. Why does the government in Australia collect excise tax from the sellers of petrol (petrol stations) rather than motorists who consume and burn the petrol in their cars?

2. At the 2022 March Budget, the federal government in Australia reduced the petrol excise tax by half to $0.22 cents per litre to ease the pressure on the cost of living. Explain why most economists said it would ease the cost of living and reduce the price of petrol by $0.22, but thought it was bad microeconomic policy? Why might income handouts increase the cost of living, but from a microeconomic policy perspective not be so bad?