Do sin taxes really help society?

Large sodas, alcohol, and tobacco are just a few things governments around the world want to keep us away from.

- SHREY MADAAN

It seems governments worldwide have embraced what economists call "sin taxes"—taxes on goods considered harmful to society, like sugary drinks, tobacco, and alcohol—as both a quick fix to budget imbalance and to preserve public health.

Now, as India's Group of Ministers (GoM) considers hiking the Goods and Services Tax (GST) on these so-called sin goods to 35 percent, there's much to dissect about the real impact of such measures.

The idea behind a sin tax is pretty straightforward: make harmful products more expensive, so people buy less of them. It's about nudging us away from bad habits while boosting government funds. Take a moment to think about where that tax-generated revenue goes and whether taxes actually work.