Sovereign governments collect taxes to destroy money, not to fund things. They can fund things by creating money from thin air; the taxes are to remove money from circulation and control inflation.
That said, a government can decide what it wants to tax, and how much. Sales taxes hurt economic activity, and fall disproportionately on the poor, so a high sales tax is generally bad. You can either have a higher tax specifically for luxuries, or instead charge a wealth / income tax.