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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 alsoprogressive tax, regressive tax.
This entry comes from Encyclopædia Britannica Concise. For the full entry on consumption tax, visit Britannica.com.
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