Demerit taxation: defined by the Sticky-Marketing.com monthly magazine |
|
A tax is described as a demerit tax when it is levied on a class of products that the government in power wants to reduce the consumption of, therefore specific taxation on
cigarettes and sometimes alcohol is often called a demerit tax. Calling a tax a demerit tax suggests that it is not about revenue maximisation for the government but this can be a question for
judgement and debate depending on where your position is on the item being taxed.
See also legislation
21/10/2004 Use your browser back button or
click here to visit the Sales & Marketing Glossary of Terms
| 
Home