Sin taxes (Ro.: taxa pe viciu, Fr.: sainte taxe, n.f., Cz.: daň z hříchu) (See also: Pigovian tax, sales tax, sin stock, tobacco tax) = an excise tax added to certain products or services (such as cigarettes, liquor, gambling, chocolate, air-conditioning, gasoline), considered neither luxuries, nor necessities, that has two main purposes: a) to discourage the consumption of these so-called products/ services without the need to outlaw them, and b) to increase governmental revenue in a more socially acceptable manner.

Consumption taxes are economically efficient. Also, they are considered to directly link payment for the damage to society caused by these so-called vicious products/ services, and they are effectively able to reduce their use by increasing the price.


Useful links

Legislation - Council Directive 2011/64/EU of 21 June 2011 on the structure and rates of excise duty applied to manufactured tobacco (codification) [English] - Law 124/2015, Romania [Romanian] - Fuel Tax Act, Canada [English]

Case Law - Republic of the Philippines, Supreme Court, Manila, Commissioner of Internal Revenu v. Fortune Tobacco Corporation, 2011 - Ruling no. 2096/2011, High Court of Cassation and Justice of Romania, Division for administrative and fiscal disputes, 2011 - Judgment of the Court (Third Chamber) of 27 February 2014 (request for a preliminary ruling from the Tribunal Superior de Justicia de Cataluña (Spain)), Transportes Jordi Besora SL v. Generalitat de Catalunya, Case C-82/12

Organisations and associations - TTB Statutes, Alcohol and Tobacco Tax and Trade Bureau (USA) - Tobacco Taxation and Innovative Health-care Financing, World Health Organization, Regional Office for South-East Asia - Williams, R., Christ, K., Taxing Sin, Mercatus Center George Mason University (USA)

Online Publications – Häuser, Karl H., Sales tax, Encyclopedia Britannica - McArdle, Megan, 2015, Why States Like Sin Taxes, - Lim, F., 2012, Sin tax bill: Flagging some constitutional issues, - Costaş, Cosmin Flavius, 2014, Incompatibilitatea taxei pe viciu cu Dreptul european, - Mendoza, Diana G., 2015, Bloomberg lauds PH for sin tax law, – Olescu, E., 2015, 200 milioane euro în plus la buget, după aplicarea noii legi din gambling, - Dinca, T., 2014, Guvernul creşte taxele pe jocuri de noroc şi impune o taxă anuală 'de viciu' pentru slot-machine, – Sirico, Robert A., The Sin Tax: Economic and Moral Considerations, The University of North Carolina - Hill, Aaron, Sin Taxes: Definition, Pros & Cons, – Green, Rebecca, 2011, The Ethics of Sin Taxes,


McGee, Robert W., 2011, The Philosophy of Taxation and Public Finance, New York, Springer Science & Business Media


By Diana Buzilă