consumption tax
Spending-based government revenue
A consumption tax is a levy on goods and services at the point of purchase rather than on income or wealth.
Sales taxes, value-added taxes (VAT), and excise taxes on specific items like fuel or tobacco are all forms of consumption tax.
Proponents argue such taxes encourage saving and are harder to evade; critics note they fall more heavily on lower-income people, who spend a larger share of their earnings on taxable goods.
- luxury taxTariff on high-end goods
- sin taxFee on harmful goods
- VATIncremental consumption tax
- indirect taxLevy passed to consumers
- hidden taxObscured fiscal extraction
value-added tax · point of sale · cash register · checkout line · tax burden · tax reform · disposable income · take-home pay · purchasing power · tax · discretionary spending · revenue generation · behavioral economics · levy · spending · retail · duty · government
consumption taxincome tax
Government charge on earnings
wage tax · payroll tax · wealth tax · progressive tax · progressive taxation
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