The decision of the GST Council on September 3 to impose a special 40 per cent tax on sin and super luxury goods is a progressive move that will build both a healthier society in our country and a more equitable economy. At a time when the government is seeking to balance growth with responsibility, this move will address two critical issues: it will discourage harmful consumption and ensure that the affluent pay their fair share. By including pan masala, tobacco products, aerated drinks and cigarettes in the highest GST bracket, the government has sent a strong signal that public health is more important than corporate profiteering. Tobacco use alone costs the country an estimated ₹1.8 lakh crore annually in healthcare expenses and productivity losses, far exceeding the revenue it generates. Higher taxation not only deters consumption—especially among youth—but also helps offset the financial burden on the healthcare system. Every rupee collected from high taxes can be redirected towards preventive healthcare, cancer treatment, and awareness campaigns, which will ultimately reduce our disease burden. On the other end of the spectrum, the inclusion of luxury cars above 1,200 cc for petrol and 1,500 cc for diesel, motorcycles exceeding 350 cc, private aircraft, and yachts under the 40 per cent tax seems to be rooted in fairness. In a developing economy like ours where millions are still struggling for basic amenities, it is only just that luxury consumption attracts higher taxation. This ensures that the wealthy contribute proportionately more to the public exchequer, which enables greater social investment in infrastructure, education, and welfare schemes. Moreover, this taxation framework has an environmental dimension. Larger vehicles consume more fuel, contribute disproportionately to air pollution, and exacerbate our already pressing climate challenges. By taxing them heavily, the government seems to be pushing the consumers towards more fuel-efficient and eco-friendly alternatives or public transport. Similarly, private jets and yachts, notorious for their carbon footprints, now face a fiscal disincentive. This has aligned our taxation policy with our climate commitments and sustainable development goals. Economically, this 40 per cent levy is expected to strengthen revenue collection without burdening the middle and lower classes. Unlike essential goods or small family cars, these products represent either harmful addictions or luxury indulgences. The principle of “ability to pay” thus comes into sharp focus: those who can afford extravagance can certainly afford to contribute more to the nation’s development. The added revenues can help states implement social schemes, reduce fiscal deficits, and invest in long-term nation-building. Finally, the success of this new taxation policy will rest not only on strict implementation but also on complementary measures which will go a long way in strengthening our economy.