What does sin tax generally refer to?

The term "sin tax" typically refers to an excise tax levied on specific goods or services that are considered harmful to individuals or society as a whole. This often includes items such as alcohol, tobacco, and sugary drinks. The rationale behind sin taxes is to discourage consumption of these products due to their negative health effects and social costs, while also generating revenue for government programs, such as public health initiatives.

By taxing harmful goods, governments aim to influence behavior—encouraging people to make healthier choices—while simultaneously collecting funds that can be used to mitigate the consequences associated with the consumption of those goods. This makes the concept of sin tax quite distinct from other forms of taxation, which do not specifically target consumption behaviors linked to societal or individual harm.