purchase tax
purchase tax — noun
1. A tax that customers must pay when they buy certain products or services, added
A tax that customers must pay when they buy certain products or services, added as a percentage of the price and included in the final cost at the checkout.
Niran checked the receipt to see how much purchase tax had been added to his new laptop.
When the government raised the purchase tax on electronics, many stores offered discounts to help customers save money.
purchase tax on + product category
The price tag showed the cost before purchase tax, so Constanza was surprised by the higher total at the register.
Cyrus delayed buying a car because the purchase tax was about to be reduced.
Amani paid an extra 8% purchase tax on a new sofa she bought in Lagos.
- sales tax
More common in US English; usually a flat percentage on all retail items, while purchase tax may vary by category.
- consumption tax
A broader economic term covering all taxes on spending, including purchase tax, VAT, and excise duties.
- excise duty
Applies to specific goods such as alcohol, tobacco, or fuel rather than general purchases.
用法筆記
Often confused with sales tax, but purchase tax may be applied at different rates to different categories of goods rather than a flat percentage on all items.
常見錯誤
2. A former tax in the United Kingdom on goods, with the amount charged varying bas
A former tax in the United Kingdom on goods, with the amount charged varying based on whether the item was considered a basic necessity or a luxury.
In 1950s Britain, purchase tax on cosmetics was much higher than on basic food items like bread and milk.
variety-based rates: luxury goods taxed higher
Eleni's grandmother remembered when purchase tax on a new radio was almost twenty percent of the price.
The British government replaced purchase tax with value added tax in 1973 to align with European trade rules.
Historians note that purchase tax was introduced during wartime to control spending on non-essential goods.
Under the old purchase tax, a washing machine cost more because it was classed as a semi-luxury product.
- VAT
The modern replacement for purchase tax in the UK since 1973; VAT is broader and applies at multiple stages of production, not just at final sale.
用法筆記
This sense refers specifically to the UK tax system that existed before 1973. The tax rate was graduated: essential goods (food, fuel) were exempt or low-rated, while luxury goods (jewellery, cars) faced higher rates.