Sin Goods and Sin Tax

• Recently, Finance Ministry said that two-wheelers are neither a luxury nor sin goods and so, merit a GST rate revision.
• Two-wheelers currently attract 28% GST.
• Last year, the country’s largest two-wheeler maker Hero MotoCorp had urged the government to consider a phase-wise reduction in GST on the segment, starting with bringing bikes up to 150 cc into the 18% slab.

Sin Goods

• Sin goods are goods which are considered harmful to society.
• Examples: Alcohol and Tobacco, Candies, Drugs, Soft drinks, Fast foods, Coffee, Sugar, Gambling and Pornography.

Sin Tax

• Taxes levied by the government on sin goods are called Sin Tax.
• These are imposed ....