Addiction A-Z

Sin tax

The reference to sin tax is a misnomer, as it is not a technical term in economics. It is a form of excise tax, except that the so-called sin tax is not levied on all items, only certain items. These are typically items that include alcohol and tobacco, products that carry some element of societal disapproval in that they’re considered vaguely immoral. The idea behind levying sin taxes is that the state gets to collect more revenue from them and the consumer buying them has to pay more for their “vice.” Sin taxes are in addition to a general sales tax.

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