luxury tax

luxury tax definition - business

luxury tax

An excise tax on nonessential goods. A luxury tax may be levied in order to reduce the consumption of a particular item (for example, big vehicles with poor fuel mileage) or to generate revenue (as with a tax on perfume).

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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