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miskamm [114]
3 years ago
13

Why does the government place excise taxes on goods such as cigarettes and alcohol?

Geography
1 answer:
kykrilka [37]3 years ago
6 0
Excise taxes are also known as "sin taxes" meaning that the government deems these products as unhealthy, sinful acts. They do this in order to restrict the supply of some goods and services to decrease the supply of those goods and services in the market which increases the price of them. It's used to discourage consumption of these products. It's a form of regulation.
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