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

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.

From The Wall Street Journal

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.

From 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.

From Barron's

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

From Barron's

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

From Barron's