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

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

Fourth-quarter sales fell after buyers rushed to beat the September expiration of the $7,500 federal EV purchase tax credit.

From Barron's • Apr. 2, 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

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

Investors have been focused on EV affordability after the $7,500 federal EV purchase tax credit expired in September.

From Barron's • Mar. 10, 2026