purchase tax

noun

British.

1. a sales tax on nonessential and luxury goods.

purchase tax

noun

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

Word History and Origins

Origin of purchase tax¹

First recorded in 1935–40

Example Sentences

He expects auto sales growth to decline in 1Q 2026 on year, as potential buyer demand is pulled forward into 4Q ahead of expected adjustments in supportive policies, including a reduction in trade-in subsidies and the introduction of a new purchase tax for NEVs.

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The expiration of the U.S. federal $7,500 purchase tax credit helped September’s sales, with buyers looking to get the benefit before it was gone.

Read more on Barron's

Ford sold 4,709 EVs, down 25% year over year, showing the effect of the end of the $7,500 federal EV purchase tax credit.

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What’s Next: China’s New Energy Vehicle purchase tax exemption is expected to be halved in 2026, Citi analyst Jeff Chung wrote recently.

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The Chinese subsidy cuts come as the federal government eliminated the $7,500 EV purchase tax credit in September.

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