The state of Georgia recently increased its tax on a carton of cigarettes by $2.00. What type of tax is this?
A)A sin tax
B)An excise tax
C)It is not a tax; it is a fine
D)A sin tax and an excise tax are correct
E)None of the choices are correct

Question

Quizplus · Accepted Answer

The tax on a carton of cigarettes is both a sin tax and an excise tax. A sin tax is levied on specific goods deemed harmful to society, like tobacco, and an excise tax is a tax on specific goods, services, or activities. The increase in tax on cigarettes by Georgia fits both definitions.

The State of Georgia Recently Increased Its Tax on a Carton