Question

A special virtue of indirect taxes is that they sometimes help in social reforms. Explain.

Indirect taxes sometimes help in social reforms. Explain.

Answer 1

Heavy indirect taxation on commodities such as wine and opium serves a great social purpose. It helps to check their consumption and saves society from their harmful effects.

Answer 2

Indirect taxes levied on the cigarette and other harmful substances will decrease the demand for such goods. This helps in protecting the health of the people in an economy. Hence, it is true that the indirect taxes help in social reforms.