consumption tax

noun

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

Word History and Origins

Origin of consumption tax¹

First recorded in 1900–05

Example Sentences

Although the X tax may look like an income tax, its economic properties make it a consumption tax.

From The Daily Beast

That would be at least another couple percent of GNP, collected ideally through a steeply graduated consumption tax.

From The Daily Beast

In Europe, you pay for it through a heavy consumption tax called the VAT, or value-added tax.

From The Daily Beast