Why does the government levy high taxes on demerit goods?

The government levies high taxes on demerit goods in order to discourage their consumption and reduce the negative externalities associated with them. Demerit goods are products or services that are considered harmful to individuals or society, such as alcohol, tobacco, and sugary drinks. By imposing high taxes on these goods, the government aims to reduce their consumption and the associated negative impacts on public health, the environment, and social well-being.

Additionally, high taxes on demerit goods can help generate revenue for the government, which can be used to fund public services and programs aimed at addressing the negative effects of these goods. Overall, taxing demerit goods at a higher rate is seen as a way to promote public health and well-being, while also addressing the social costs associated with their consumption.