sin tax business definition

A government levy on goods or services considered by many citizens to be socially objectionable. Cigarettes and liquor are two favorite targets for the levying of a sin tax. Taxes on gambling and legalized prostitution would also be considered sin taxes. A government that wants additional revenues can try to make a case that additional sin taxes will reduce consumption of an objectionable good or service. Proponents claim people can always quit using the good or service if they want to avoid the tax.