sin tax: meaning, definition, pronunciation and examples

A sin tax is a type of excise tax. All sin taxes are excise taxes (taxes on specific goods), but not all excise taxes are sin taxes (e.g., fuel duty is an excise tax but not typically considered a sin tax).

No. While it aims to reduce consumption, its effectiveness depends on the price elasticity of demand. For addictive goods like tobacco, demand may be relatively inelastic, meaning people continue buying despite higher prices.

They are considered regressive because they take a larger percentage of income from low-income earners than from high-income earners, as spending on taxed goods like cigarettes often constitutes a higher proportion of a poorer household's budget.

Conceptually similar, as both aim to correct negative externalities. However, 'sin tax' traditionally carries a moral/behavioural connotation related to personal vices, while 'carbon tax' is an environmental economic instrument. They are often discussed separately in policy.

A tax imposed by a government on goods or activities considered harmful or morally questionable, such as tobacco, alcohol, or gambling.

Sin tax is usually formal, journalistic, academic, political in register.

Sin tax: in British English it is pronounced /ˈsɪn tæks/, and in American English it is pronounced /ˈsɪn tæks/. Tap the audio buttons above to hear it.