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

Those vehicles are supposed to boost Rivian’s shipments to about 65,000 vehicles in 2026, up from 42,000 in 2025, even though the loss of the $7,500 federal EV purchase tax credit, which expired in September, made EVs less affordable.

From Barron's

U.S. all-electric sales are expected to decline in 2026 to about 5% of 2026 new car sales after the September expiration of the $7,500 federal EV purchase tax credit.

From Barron's

The expiration of the $7,500 federal EV purchase tax credit at the end of September weighed on industry sales.

From Barron's

Several things have changed for Chinese EV buyers in the new year, including the end of the full purchase tax exemption for electrified vehicles.

From Barron's

The ending of the $7,500 purchase tax credit in September led to the decline.

From Barron's