It is usually restrictive and is levied on products which are deemed undesirable by the society
In the Union budget of 2014, finance minister Arun Jaitley increased the excise duty on cigarettes by 11-72% depending on the length. Similar increases were also introduced on cigars, cheroots and cigarillos. An additional 5% excise duty on fizzy drinks containing sugar was also announced. These specific increases in duty on certain items or activities are termed as ‘sin tax’.