Purchase Tax

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Purchase Tax

A proposed tax on a purchase, rather than on a sale. That is, the purchaser of a good, rather than the seller, is obligated to pay the tax. In practice, there is little difference between a purchase tax and a sales tax because sellers usually pass on the tax to purchasers in the form of a higher price. A purchase tax has been suggested as an alternative to the income tax in the United States.
References in periodicals archive ?
Grand Bahama is a good choice as it has no local taxes, purchase taxes or selling taxes--a program introduced by the Grand Bahama Port Authority and joint venture partner Hutchison Whampoa to encourage economic growth on the island, says Ross Robinson at Cushman & Wakefield (June 2, 2008).
You need to allow around 12 per cent on top of the asking price to cover legal fees and purchase taxes.
These include car purchase taxes, car ownership and road taxes.
Owing to high car purchase taxes in Denmark, Finland, the Netherlands and Portugal, most manufacturers determine list prices before tax for those countries at a low level, arguing that this is necessary for selling their cars at affordable after-tax prices.
This means, you'll pay for the purchase taxes when you buy the vehicle, but you'll be entitled to a tax return deduction, lowering your taxable income for 2009.