Sin Taxes: Between Public Health and the Risk of Disguised Protectionism

14 Pages Posted: 7 Nov 2023

See all articles by Antonio Lopo Martinez

Antonio Lopo Martinez

University of Coimbra Institute for Legal Research

Date Written: October 7, 2023

Abstract

Taxing unhealthy products, known as "sin taxes", is a strategy to discourage the consumption of items such as tobacco, alcohol and unhealthy foods. Originating in the era of Adam Smith, this practice has received support from global health organizations such as the WHO, which recognize its potential to promote healthy habits. However, as these taxes evolve, economic and trade concerns arise. The WTO, for example, highlights the risks of covert protectionism, especially when imported products are taxed differently. Brazil, in proposing the "Selective Tax" which encompasses health and environmental concerns, faces this delicate balance. It is therefore essential that the implementation of these taxes is clear, based on science and aligned with international standards to prevent accusations of protectionism.

Keywords: Sin taxes, Public health, WTO, Protectionism, Selective taxation

JEL Classification: K34, F13

Suggested Citation

Martinez, Antonio Lopo, Sin Taxes: Between Public Health and the Risk of Disguised Protectionism (October 7, 2023). Available at SSRN: https://ssrn.com/abstract=4595581 or http://dx.doi.org/10.2139/ssrn.4595581

Antonio Lopo Martinez (Contact Author)

University of Coimbra Institute for Legal Research ( email )

Colegio Trindade
Coimbra

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