Which tax is primarily used to discourage undesirable behavior, such as smoking or excessive drinking?

The correct choice is excise tax, which is specifically designed to target certain products or activities that are deemed undesirable by governments, such as smoking and excessive drinking. By imposing this type of tax, governments aim to reduce consumption of harmful goods, thereby promoting public health and discouraging behaviors that may lead to negative societal outcomes.

Excise taxes are typically applied to specific goods like tobacco, alcohol, and fuel. The higher cost resulting from these taxes is intended to deter individuals from purchasing and using these products in excess. This can effectively address issues related to public health, safety, and welfare.

In contrast, user fees are charges levied for specific services, such as park entry or waste collection, and do not serve the same purpose of discouraging behavior. The Value Added Tax (VAT) is a consumption tax used broadly on goods and services and does not target undesirable behaviors specifically. Income tax is a tax on individual or corporate earnings and does not function to influence consumption patterns in the same way that an excise tax does.