“Sin tax” is a higher tax rate for products that typically have bad effects on the human body. Products that fall under Sin Tax include: GMO food, junk food, snacks, marijuana, vending machines food and soda drinks. The concept of the ‘Sin Tax’ is to make unhealthy food and drinks more expensive so people would stop buying them as much. The American Government is trying to reduce disease connected to obesity, and the “Sin Tax” is the first step to reduce obesity in U.S. But what kind of impact does “Sin Tax“ have on the American economy itself?
Sin Tax is a double-edged sword. In some ways, it is beneficial for the community, and on the other hand it is harmful to the business owner. It is beneficial for the community by making people think twice before purchasing products that are harmful to their health due to higher prices; however, lower sales on sin tax products can lead to decreased profits for business owners, especially if regulations become even stricter.
How ‘Sin Tax’ may affect products?
Sin Tax aims to keep the American people healthy. Which is great for the general population; however, businesses selling sin tax products may need to consider alternatives. If your commodity become labeled as ‘Sin Tax’ products, you will have much more difficulty to keep them in the market and possibly diminished sales. You may have to consider altering recipes to avoid getting labeled as ‘sin tax’ or offer healthier choice options as well.
Contact us and tell us about your products to find if they are or not labeled under this category.