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

Part of the reason for the decline was the loss of the $7,500 federal EV purchase tax credit in September.

From Barron's

EVs lost the $7,500 federal purchase tax credit in September, which will very likely lead to fewer EVs sold in the U.S. in 2026 compared with 2025.

From Barron's

Electric vehicle sales in the quarter totaled 14,513 vehicles, down 52% from a year earlier, pressured by the September expiration of the $7,500 federal purchase tax credit.

From Barron's

Over the midterm, purchase tax incentives for EVs are extended through 2027, he says.

From The Wall Street Journal

The fourth-quarter decline was expected because the federal government ended the $7,500 EV purchase tax credit in September, effectively raising the cost of EVs in America.

From Barron's