What is Sin Tax Bill?

A sin tax is a type of sumptuary tax. That is a tax specifically levied on certain goods and services which society considers to be unacceptable. Examples of items taxed this way include tobacco, alcohol, candies, soft drinks, gambling, fast food, polluting vehicles, and coffee. Some suggest sumptuary taxes on sugar and soft drinks for public health reasons. Some jurisdictions impose taxes on illegal drugs such as marijuana and cocaine.

The revenue generated by such taxes is sometimes used for special projects. However, such revenue can also be used in the ordinary budget. For instance, American cities and states have used them to pay for stadiums or for education. In Sweden, gambling taxes are used to help problem gamblers. People are more likely to accept sumptuary taxes than income taxes or sales taxes.