A sin tax is an extra tax levied on certain goods or services deemed harmful to society, for example alcohol and tobacco, candies, drugs, soft drinks, fast foods, sugar, gambling etc. Two claimed purposes are usually used to argue for such taxes – raising revenue and discouraging consumption. In India, sin tax is levied on tobacco and soft drinks through GST. On tobacco there is both GST and Central Excise. On liquor while there is no GST, there is high VAT and State Excise. This is also a sin tax. On fuel and motor vehicles, high taxes are levied. This is a mix of sin tax and luxury tax
