Definition of Consumption tax:
A tax levied on goods sold to final consumers.
A tax on spending by consumers, such as a sales tax or VAT.
A consumption tax can also refer to a taxing system as a whole in which people are taxed based on how much they consume rather than how much they add to the economy (income tax).
A consumption tax is a tax on the purchase of a good or service. Consumption taxes can take the form of sales taxes, tariffs, excise, and other taxes on consumed goods and services.
How to use Consumption tax in a sentence?
- Taxes on goods and services are commonly referred to as consumption taxes.
- Retail sales tax and value added tax are examples of a consumption tax.
- A consumption tax is charged when consumers spend money, while an income tax is assessed on earned money.
Meaning of Consumption tax & Consumption tax Definition