A luxury tax is a type of tax imposed on high-end or luxurious goods and services, and it is also known as a "sin tax," "excess tax," or "surcharge." Some countries refer to this tax as a "depreciation allowance," "premium tax," or "luxury surtax." The primary purpose of a luxury tax is to generate revenue for the government while also discouraging the purchase of expensive items, which may contribute to income inequality. In addition to tangible products, the luxury tax can also apply to certain services, such as high-end luxury vacations, luxury boat rentals, or private jet charters.