Sin Tax to be imposed on alcohol, tobacco during GST regime

Sin Tax: An excise tax levied on products and services considered bad for health or society

Sin Tax was in news in fourth week of October 2015. It was in news as it has been included under the proposed Goods and Services Tax (GST) law that will be effective from 1 April 2016. GST is being seen as one of the biggest tax reforms in the country.

Sin tax is an excise tax levied on products and services like alcohol, tobacco and gambling considered bad for health or society. These additional taxes are also seen as efforts to discourage people from use of such products or services.

This kind of tax is often used by government to attract higher their tax revenues as people generally refrain from opposition to such levies as they are indirect in nature and affect only their end users.

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