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

EV sales fell in the fourth quarter and are expected to decline in 2026 after the September expiration of the $7,500 federal EV purchase tax credit.

From Barron's • Apr. 8, 2026

That would be a 9% year-over-year rise—impressive considering U.S. car buyers lost the $7,500 federal EV purchase tax credit in September and Chinese EV sales have started the year off slowly.

From Barron's • Mar. 27, 2026

The $7,500 federal purchase tax credit expired at the end of September, causing U.S.

From Barron's • Mar. 16, 2026

A scaled back trade-in program and a rise in the EV purchase tax from 0% to 5% may prompt domestic auto sales growth to slow, Nomura says.

From The Wall Street Journal • Mar. 12, 2026

EV sales in the fourth quarter dropped 36% year over year to some 234,000 vehicles following the loss of the federal $7,500 EV purchase tax credit in September.

From Barron's • Mar. 6, 2026