Question

The introduction of a "sin tax" on goods like tobacco and alcohol serves which dual purpose?

• A. To increase the affordability of luxury goods and boost overall consumer spending.
• B. To generate revenue and discourage the consumption of harmful goods.
• C. To fund public infrastructure projects and create new employment opportunities.
• D. To subsidize the production of unhealthy goods and encourage market competition.

Answer 1

Answer:

B. To generate revenue and discourage the consumption of harmful goods.

• A sin tax is an excise tax specifically levied on certain goods deemed harmful or undesirable, serving to raise revenue while also discouraging their use for public health reasons.