sales tax

(redirected from Sale Tax)
Also found in: Dictionary, Thesaurus, Legal, Financial.

sales tax,

levy on the sale of goods or services, generally calculated as a percentage of the selling price, and sometimes called a purchase tax. It is usually collected in the form of an extra charge by the retailer, who remits the tax to the government. It may be levied each time a commodity changes hands—as from manufacturer to wholesaler, from wholesaler to retailer—and is then called a transactions, or turnover, tax. Many oppose the tax as being regressive, i.e., as placing a disproportionately heavy burden on the poor; but it yields a large revenue, and governments find it easy to collect. As of 1999, 45 states, the District of Columbia, a number of cities and counties, and many foreign countries levied sales taxes. A modern variant of the sales tax is the value-added taxvalue-added tax
(VAT), levy imposed on business at all levels of the manufacture and production of a good or service and based on the increase in price, or value, provided by each level.
..... Click the link for more information.
.
The Columbia Electronic Encyclopedia™ Copyright © 2013, Columbia University Press. Licensed from Columbia University Press. All rights reserved. www.cc.columbia.edu/cu/cup/
References in periodicals archive ?
After hearing the arguments, the two-member bench set aside the powers of the FBR to collect sales tax from the business community without registering them under the Sale Tax Act 1990 and Sale Tax Rules 2006.
'The FBR will firstly register a businessman and then will apply section 3 of Sale Tax Act,' the verdict stated.
Under the sale tax act, power producing companies were supposed to pay 17 per cent sales tax but currently, they were paying 32 per cent sales tax which was much higher than the actual tax.