Sin Tax

Sin Tax refers to a specific type of tax levied on goods and services considered harmful to society, such as tobacco, alcohol, and gambling. The primary purpose of a sin tax is to discourage the consumption of these products due to their negative externalities, such as health issues and social problems.

Sin taxes are often implemented at higher rates than regular sales taxes and can serve as a source of revenue for government programs, including public health initiatives. For example, an increase in cigarette taxes may aim to reduce smoking rates while generating funds for smoking cessation programs.