taxNews
Konnectplus
Kenya

Sin Taxes, Why Governments Tax Sin and Whether They Work

id : 91 Tax Policy   
posted by : Admin
 DOQ : 2020-05-22 07:22:32
   Admin
  
91_20030304.png

What is sin tax?

Sin tax is levied to discourage people from consuming goods or services such as tobacco and alcohol that are harmful to society. It serves two purposes:

i) Make the specific goods expensive, so much so that consumers are forced to not consume them

ii) Collect higher taxes from industries that produce such goods and use it to fund welfare expenditure.

Governments of various economies have resorted to levying sin tax to make consumers of harmful products liable for their actions. They have gone a step ahead and added other products in addition to alcohol and cigarettes to the list of sin goods. For instance, the Canadian, UK, and Swedish governments consider lotteries, fuel, and gambling as sin goods. Mexico has a soda tax and the UK is considering a sugar tax to fight obesity.


You may also like...

The Kenya Revenue Authority (KRA) on Monday suffered a blow after the High Court sitting in Nairobi
Court case: Treasury agreements aiding the rich evade paying taxes This claim is contained in a cou

106_20100718.jpg

KRA to collect Sh10bn more after raising tax. The government expects to collect an additional Sh10

WHAT HAS CHANGED? HMRC has changed its approach to VAT on deposits. The change affects situations w

102_20051257.jpg

102_20051257.jpg

Kenya’s Taxman will introduce an amnesty programme for income tax, VAT and Excise Duty once the Fi
In Summary The powers to search any premises and seize goods, documents or storage device are don

my Views
(0)
taxBaddy.com @2014-2020 All rights reserved
Powered by : gravityworks@taxbaddy.com