consumption tax

American  

noun

1. a tax, as a sales tax, levied on consumer goods or services at the time of sale.

---

Etymology

Origin of consumption tax

First recorded in 1900–05

Example Sentences

See Examples For:

consumption tax

This is supposed to ensure that the end consumer pays the full consumption tax.

From The Wall Street Journal ● Aug. 27, 2026

That alternative would include replacing tariffs with a destination-based consumption tax and move toward a skills-based immigration system, the fund said in a report Wednesday.

From The Wall Street Journal ● Feb. 26, 2026

In addition to the promise of increased public spending of around $135 billion, or 3% of Japan’s GDP, Takaichi also promised to eliminate the consumption tax on food.

From Barron's ● Feb. 9, 2026

Last month, yields on long-term Japanese bonds hit record highs after Takaichi pledged to exempt food from an eight-percent consumption tax to ease the pain of inflation on households.

From Barron's ● Feb. 5, 2026

The government introduced a 5% tax on electricity and telephones and doubled the general consumption tax, which caused a small rise in the inflation rate.

From The 1998 CIA World Factbook by United States. Central Intelligence Agency