What is 'Sin Tax', in which there is a huge increase in every budget?
The country's Finance minister nirmala sitharaman is going to present the Interim Budget on february 1. Since it is an election year, it is expected that no major changes will be made in it. Taxpayers are waiting for exemption in income tax. All the industries are expecting schemes for their benefit from the Finance Minister. But, nirmala sitharaman has indicated that she will leave big announcements to the incoming government. However, there is one tax which increases in every budget. We know it as ‘Sin Tax’ or ‘Sin Tax’. Let us know what this sin tax is after all.
This tax is levied on tobacco, alcohol and gambling
Lok Sabha elections are going to be held in a few months. After that a new government will be formed, which will present the full budget. Even though there will be no major changes in the interim budget, the increase in sin tax is almost certain. This tax is a big tax imposed on products like tobacco, alcohol and gambling. The government's effort is to make people expensive by making them expensive and try to dissuade people from using them.
government gets double benefit from this tax
India is continuously increasing heavy taxes on products like cigarettes, liquor and pan masala. It is included in those selected countries of the world where sin tax is the highest. There are double benefits from this tax. First, government revenue increases. Also, the public does not oppose increasing taxes on cigarettes, alcohol and tobacco products. Secondly, tobacco products and alcohol also help in protecting people's health. The increase in sin tax also puts a burden on the companies making these products.