purchase tax

American  

noun

British.

1. a sales tax on nonessential and luxury goods.

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purchase tax British  

noun

1. a tax levied on nonessential consumer goods and added to selling prices by retailers

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Etymology

Origin of purchase tax

First recorded in 1935–40

Example Sentences

A reduction in subsidies and a 5% purchase tax hike on EVs are expected to slow market momentum.

From The Wall Street Journal • May 19, 2026

What’s more, the average price of a new EV is dropping since the September expiration of the $7,500 federal purchase tax credit.

From Barron's • May 17, 2026

The reduction in government subsidies and a 5% purchase tax hike on EVs are expected to slow market momentum, following a high base with demand pulled forward into 2024-2025.

From The Wall Street Journal • May 6, 2026

The $7,500 federal purchase tax credit expired in September, and first-quarter U.S.

From Barron's • May 5, 2026

U.S. sales of all-electric cars fell 27% External link year over year in the first quarter, following the September expiration of the federal $7,500 EV purchase tax credit.

From Barron's • Apr. 24, 2026