DPIIT has recommended that the government removes the Angel Tax, ahead of the union budget. (Representative Image)
Credit: iStock
Finance Minister Nirmala Sitharaman will present the Union Budget on July 23, having already presented an Interim Budget ahead of the Lok Sabha elections. In light of the upcoming Budget, we take a look at some of the terms associated with the exercise.
What is sin tax?
Sin tax is a substantial levy imposed products such as tobacco, alcoholic beverages, gambling, etc., aiming to discourage their consumption among the public.
India has consistently been one of the countries imposing hefty taxes on items like cigarettes, liquor, and pan masala substances.
These taxes serve a dual purpose: First, by increasing the market price, they dissuade people from consuming what is perceived as undesirable. Second, the companies manufacturing these products bear a significant tax burden.
In essence, a sin tax is perceived as a beneficial strategy from the government's perspective.
Union Budget 2024 | Making a record for any Finance Minister, Nirmala Sitharaman will be presenting her 7th Union Budget on July 23, 2024 under the Modi 3.0 government. While inflation has burnt a hole in the pockets of 'aam janata', will this Budget spell relief for Indians? Track the latest coverage, live news, in-depth opinions, and analysis only on Deccan Herald. Also follow us on WhatsApp, LinkedIn, X, Facebook, YouTube, and Instagram.