Liquor, Tobacco and Sin Goods: Checkpoint 1

Quick checkpoint - five questions on sin goods, liquor revenue, prohibition, hooch and tobacco taxes.

Question 1 of 5 What is an internality?

A harm users impose on their own future selves A harm to neighbours A tax on imports A government subsidy

Addiction and present bias cause internalities.

Question 2 of 5 How is alcohol taxed in India?

By states through excise and VAT, outside GST Under GST at 5 percent Not at all Only by the Centre

Liquor is a major state revenue source.

Question 3 of 5 Which state has had prohibition since 2016?

Bihar Goa Punjab Karnataka

Gujarat has had it since 1960.

Question 4 of 5 Why do poor drinkers buy hooch?

It's cheap and legal liquor is costly or unavailable It's safer It's taxed more It's legally required

Price gaps drive illicit demand.

Question 5 of 5 How are beedis taxed compared with cigarettes?

Much less Much more The same Not sold in India

Beedi rolling employs millions, influencing policy.

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