Consumption tax

Consumption tax,

Definition of Consumption tax:

  1. A tax levied on goods sold to final consumers.

  2. A tax on spending by consumers, such as a sales tax or VAT.

  3. 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).

  4. 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?

  1. Taxes on goods and services are commonly referred to as consumption taxes.
  2. Retail sales tax and value added tax are examples of a consumption tax.
  3. 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