Provincial governments levy excise taxes on cigarettes because:

Question

Quizplus · Accepted Answer

Provincial governments levy excise taxes on cigarettes as it is an easy way to raise tax revenue while discouraging smoking. It is a popular type of "sin tax" and has been proven to reduce smoking rates in some studies. The other options are incorrect as governments typically do not want to subsidize tobacco farming or encourage smoking through minimizing tax burden on consumers. Smuggling is also a concern, but it is not the primary reason for excise taxes.

Provincial Governments Levy Excise Taxes on Cigarettes Because