USA HISTORY

Detailed explanation-1: -A sin tax is a tax levied on goods or services that are considered to be harmful or costly to society. The goods and services commonly include tobacco, alcohol, sugar-added drinks, and gambling. The main purposes of imposing sin taxes are to reduce the consumption of harmful goods and to increase government revenue.

Detailed explanation-2: -A sin tax is imposed on goods and services, which are perceived as harmful to society. Examples of products on which sin tax is imposed are tobacco, gambling ventures, alcohol, cigarettes, etc.

Detailed explanation-3: -"The 16 per cent increase in NCCD announced in the union budget effectively increases the overall taxes on cigarettes by only about 1.8 per cent, and its expected impact on the retail price of cigarettes is just about 1 per cent, ” Professor Rijo John, a health economist, told India Today.

Detailed explanation-4: -A “sin tax” is a tax levied on products or activities that are considered harmful or undesirable. These taxes are typically implemented to discourage consumption of the taxed products or to raise revenue for the government.

Detailed explanation-5: -Before GST, taxing tobacco was a way for State governments to increase revenue and regulate consumption. For example, Rajasthan had a 65% VAT on tobacco products. After GST, States can no longer raise taxes on tobacco, which hinders their ability to increase revenue and regulate consumption.