Consumption tax: Definition from Answers.com Mobile

consumption tax

Levy such as an excise tax, a sales tax, or a tariff paid directly or indirectly by the consumer. 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.

For more information on consumption tax, visit Britannica.com.