In today’s global environment it becomes very important to address the issue of taxes. Here in this page we shall discuss the concept in regard to luxury taxes and the drastic affects it can have on essentials such as popcorn.
Why Popcorn is Considered for the Luxury Tax?
One possible candidate for a luxury tax could be popcorn the uncontestably favorite snack of people from different countries of the world. It is one of the foods people take and enjoy taking, but it does not play a role of, the basic staple foods.
Whether to tax popcorn or indeed any commodity depends on certain factors which include the following. Now let’s look at the pros and cons in taxing popcorn.
Arguments For Taxing Popcorn
- In other words, through the taxation of popcorn, the government can be in a better position to fiscal, social, welfare and infrastructure.
- Increase popcorn taxes could lead to people switching to better-for-the-body products and thus enhance their eating habits.
Opposing Arguments to the Imposition of Taxes on Popcorn
- Exposing popcorn to tax would considerably affect the consumers’ interest especially the poor families who cannot even afford the extra charges.
- Unfortunately, popcorn is a snack for people of all ages and income BR is considering levying luxury taxes on popcorn, which is unjustified.
- This referred to also high taxes on popcorn result to loss of employment opportunities in the manufacture of popcorn and thus the economy’s health.
- Popcorn is nutritious because it contains fiber, protein, vitamins, and minerals which are lost when people are discouraged from having a snack.
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Common People Comparing Popcorn to Other Taxed Goods
Cigarettes
Cigarette is one of the most famous and widely sold examples of a luxury item that is subject to taxation.
Cars
However, cars are utilities for many people, and as such, the tax tends to be somewhat lower than a regular sales tax.
Taxation; An Equitable Function
Therefore, instead of subjecting popcorn to a luxury tax rate, the government could borrow other techniques in an effort to tap into the people’s pockets and at the same time advocating for a healthy diet.
- Exempt popcorn from the high tax brackets given for luxury products, in order to ensure availability for consumers.
- Spending the tax revenue resulting from the popcorn sales on agriculture will help support farmers and encourage sustainable use of agriculture.
- Promote the popcorn industry to add more health beneficial and variety popcorn types.
Conclusion
However, more equitable tax differentials, revenue sources, and industry policy covering a lower tax rate for a healthier drinks variety would be ideal in achieving the maximum revenues and citizens’ health indices. In conclusion, it is important that any decision to tax particularly popcorn or any other product should have the intended effects in mind as well as the relative repercussions. Click here for the source
