- a tax, as a sales tax, levied on consumer goods or services at the time of sale.[1900-05]
* * *Consumption taxes fall more heavily on lower-income than on upper-income groups because people with less money consume a larger proportion of their income than those with more money. See also progressive tax, regressive tax.
* * *a tax paid directly or indirectly by the consumer, such as excise, sales (sales tax), or use taxes (use tax), tariffs (tariff), and some property taxes (property tax) (e.g., taxes on the value of a privately owned automobile). Advocates of consumption taxes argue that people should pay taxes based on what they take out of the pool of available goods (their consumption) rather than what they contribute to that pool (their income, under the implicit assumption that income measures the reward for productive work). Those who oppose consumption taxes view them as regressive (regressive tax), because wealthier households consume a smaller fraction of their incomes than do poorer households. This argument must be qualified, however, because a wealthy person's savings will eventually be consumed, either later in that person's life or by heirs and other beneficiaries (including governments, which are enriched through estate (estate tax) or inheritance taxes (inheritance tax)). The most consequential type of consumption tax is the value-added tax (VAT). Used widely in European countries, the VAT raises a substantial portion of total tax revenues. In response to concerns about regressivity, consumption taxes are often levied at different rates on different commodities according to perceptions of the extent to which a commodity is a necessity (such as food) or a luxury (such as jewelry).
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Consumption tax — Taxation An aspect of fiscal policy … Wikipedia
consumption tax — See: value added tax * * * consumption tax consumption tax ➔ tax1 * * * consumption tax UK US noun [C or U] ► TAX a tax that is added to the price of goods and services bought by the general public: »Under a consumption tax, those who spend more… … Financial and business terms
Consumption Tax — 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. The term can also refer to a taxing system as a whole where people are taxed based on… … Investment dictionary
consumption tax — An *indirect tax charged on a good or a service. The burden of a consumption tax falls on the individual or organization that enjoys the full *worth of a good or service. It is levied at the final stage of the economic process of production,… … Auditor's dictionary
consumption tax — /kənˈsʌmpʃən tæks/ (say kuhn sumpshuhn taks) noun a tax imposed on the consumption of goods and services and levied on the retail value of the product at the point of sale to the final consumer … Australian English dictionary
consumption tax — a tax, as a sales tax, levied on consumer goods or services at the time of sale. [1900 05] … Useful english dictionary
consumption tax — See use tax … Ballentine's law dictionary
Natural resources consumption tax — Taxation An aspect of fiscal policy … Wikipedia
Niue Consumption Tax — The Niue Legislative Assembly have passed the Niue Consumption Act during the first week of February 2009, the 12.5 percent tax on good and services is expected to come into effect on 1 April 2009. Income tax has also been lowered, and import tax … Wikipedia
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