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Sin Tax on alcohol, tobacco during GST regime

Sin Tax

Sin Tax, a globally prevalent practice under which excise tax is levied on products that are bad for health or society will be imposed in India during the proposed Goods and Services Tax (GST) regime.

GST if passed in the Parliament will be effective from April 1, 2015. GST is being seen as one of the biggest tax reforms in the country. Sin tax is levied on products and services like alcohol, tobacco and gambling. 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 users. only their end.