A
sin tax is an
excise tax specifically levied on certain goods deemed harmful to society, for example
alcohol and
tobacco, candies, drugs, soft drinks, fast foods,
coffee, and
gambling. Two claimed purposes are usually used to argue for such taxes. In contrast to
pigovian taxes, which are to pay for the damage to society caused by these goods, sin taxes are used to increase the price in an effort to reduce their use, or failing that, to increase and find new sources of revenue. Increasing a sin tax is often more popular than increasing other taxes. However, these taxes have been criticized for
burdening the poor and being part of a
nanny state.