If You Smoke or Drink, You’re Probably Paying a “Sin Tax” Without Even Realising It
If you enjoy a cigarette or a glass of your favourite whiskey once in a while, here’s something you should know, you’re paying more than just the retail price. While everyone’s been talking about the latest GST reforms, a lesser-known detail will be quietly burning a hole in your pocket: the Sin tax.
As according to reports, the Indian governemnt might introduce a 40% tax slab for such products.
It’s exactly what it sounding like. The government slaps an extra heafty tax on items like tobacco and alcohol, not just for revenue, but also to discourage consumption. So, every time you buy that drink or light up, you’re not just paying for the product… you’re kind of paying for the “sin” too. Ironic? A bit. Expensive? Definitely.
What Is A Sin Tax?
This is a type of tax charged by the government of any country on products that are harmful for consumption, affect health, and often have a negative impact on society. These taxes are usually high and are applied to items like tobacco, alcohol, cigarettes, and gambling.
The main idea behind such taxes is to make these products expensive enough that fewer people are likely to buy or use them.
This concept was implied in India as part of the Goods and Services Tax (GST) back in 2017.
Sin Tax In India
In India, there’s something called a sin tax, also known as Exercise duty, it’s basically a way the government charges extra on products that aren’t exactly great for your health, like tobacco, sugary drinks, and pan masala. You might wonder why your cigarette pack or soda costs more than expected. Because, that extra money goes to the government to help support states that lose revenue from other tax changes.
Tobacco is a serious health risk and causes diseases like cancer. So, to discourage people from using it, the government puts a heavy tax on tobacco products. Cigarettes, for instance, carry a tax of about 52.7% of their final price.
According to reports by ANI, Recently, the government has also proposed moving most everyday goods to lower tax rates, but sin goods like tobacco and pan masala are getting hit with a higher tax slab of 40%. It’s a clear message: these products are expensive because they’re bad for you, and the government wants people to think twice before buying them.
Sin Tax A Global Trend
Other than India, countries such as the UK, Sweden, and Canada also impose sin taxes. These countries apply this tax on a series of products and services, from tobacco and alcohol to lotteries, gambling, and fuel. This brings them a good sum of revenues.
Mexico imposed a soda tax in 2013, and the UK is now debating a sugar tax to tackle obesity on all foods and drinks with high concentrations of the sweetener.
According to human tendency, no tax or rule can stop someone who is addicted to smoking and alcohol, or is in love with sweet and sugary drinks. It seems unfair to the lower middle class people who end up buying these goods at higher prices and lose a heavy chunk of their income for it.
(With Inputs)
Aishwarya is a journalism graduate with over three years of experience thriving in the buzzing corporate media world. She’s got a knack for decoding business news, tracking the twists and turns of the stock market, covering the masala of the entertainment world, and sometimes her stories come with just the right sprinkle of political commentary. She has worked with several organizations, interned at ZEE and gained professional skills at TV9 and News24, And now is learning and writing at NewsX, she’s no stranger to the newsroom hustle. Her storytelling style is fast-paced, creative, and perfectly tailored to connect with both the platform and its audience. Moto: Approaching every story from the reader’s point of view, backing up her insights with solid facts.
Always bold with her opinions, she also never misses the chance to weave in expert voices, keeping things balanced and insightful. In short, Aishwarya brings a fresh, sharp, and fact-driven voice to every story she touches.
