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Source: The post unusual taxes around the world has been created, based on the article “The weird tax club has a new entry from Toronto” published in “Live mints” on 5th April 2024.
UPSC Syllabus Topic: GS Paper 3- economy
News: The article discusses unusual taxes around the world. It mentions Toronto’s proposed ‘stormwater charge’, historical examples like Russia’s beard tax, and modern oddities like Switzerland’s dog tax and Sweden’s baby name tax. These taxes often aim to change behavior or raise funds.
What are the unusual taxes around the world?
Historical Unusual Taxes:
Russia’s Beard Tax: In 18th century Russia, a tax was levied on beards to encourage a more Western, clean-shaven appearance.
Britain’s Window Tax: In the same era, British homes were taxed based on the number of windows, a strategy aimed at the wealthy.
Modern Unusual Taxes:
Toronto’s ‘Stormwater Charge’: This proposed tax in Toronto is based on the ratio of permeable to impermeable surfaces on properties, intending to mitigate flooding.
Switzerland and Germany’s Dog Tax: Depending on the breed and weight of the dog, owners can be taxed differently, with larger breeds like Bull Terriers and Great Danes incurring higher taxes.
Sweden’s Baby Name Tax: A tax is imposed on families choosing names that are deemed confusing, offensive, or hard to pronounce, such as the case of a family who named their daughter Metallica.
What is the purpose of these taxes?
Influence Behavior: Taxes like Toronto’s ‘stormwater charge’ aim to encourage changes in land use to reduce urban flooding.
Raise Funds: The dog tax in Switzerland and Germany generates revenue for public provisions for pets.
Promote Social Norms: Russia’s beard tax was implemented to encourage a clean-shaven appearance, considered more modern at the time.
Target Specific Groups: Britain’s window tax was designed to tax the wealthy based on the number of windows in their homes.
Regulate Choices: Sweden’s tax on baby names like ‘Metallica’ is intended to control the naming of children with unusual or challenging names.
Questions for practice:
Discuss the rationale behind implementing unusual taxes around the world, including historical examples like Russia’s beard tax and modern ones like Toronto’s ‘stormwater charge’ and Sweden’s baby name tax.
