Elimination of taxes can be a huge luggage of the middle class and is often unpleasant among the people. However, there is one tax, when it is up, will enjoy its supporters and help people improve their health. Have you ever wondered why the cigarettes and alcohol is very expensive? Because they have special taxes called “sin tax” making them a lot. This tax is used to disable people to buying bad things for their lives.
What is the tax of sin?
The sin tax is a type of tax that is charged in bad health and community health products. These taxes are often high and used in such tobacco, alcohol, cigarettes and gambling. The concept after a sin tax to make these products very expensive, so people are less likely to use. The National Tax of Sin in India is presented as part of the assets and service tax (GST) in 2017.
Tax of sin in India
In India, sin tax is used in products such as cigarettes, sugary drinks, and pan Masala. Government uses money from this tax to help lose money due to tax changes.
Tobacco is a serious risk of life, causes many deaths and diseases such as cancer. Therefore, discouragement, government has set a high tax in tobacco products. For example, tobacco has a tax around 52.7 percent of their last percentage.
The Work of the Tax of Sin
The sin tax policy to make unhealthy products very expensive, so people are less likely to buy. This can help improve public health and reduce the number of people who are sick or kill them through these products.
What is recommending?
The World Health Organization recommends that the cigarette product rates should be at least 75 percent of their sales price. However, the Indian tax in the cigarette is lower than that. Changing this, the government builds a panel in October to create a new taxpayer policy, focusing on public health.
Alcohol is payable in taxes, because it is not part of the GST. Each state includes a split amount of alcohol, and this is a major source of their money.
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