India is increasingly using fiscal policy, specifically 'sin taxes,' as a preventive health measure. Taxes on products like cigarettes, alcohol, and sugary drinks aim to internalize the broader social costs of consumption, such as healthcare expenses and lost wages. Since the 2017 GST rollout, these 'demerit goods' have largely remained in the highest tax brackets, with a compensation cess protecting state revenues. Recent rationalizations have further separated essential from harmful or luxury consumption, placing sugary drinks in a higher tax category and maintaining high effective taxation on tobacco products.