Definition: Taxes on consumption

Category: National accounts

Taxes on consumption are defined as taxes which are levied on transactions between final consumers (private and public) and producers or sellers or on the use of final consumption goods. The tax base is a quantity of a commodity or service, its value or price or another variable which is linked to consumption. It is of no importance who actually pays the tax to the revenue board. Consumption taxes are for example: VAT and general turnover taxes, agricultural levies and excise duties, taxes on services and the taxes on motor vehicles paid by households. Due to a lack of detailed data the consumption taxes do still include taxes on intermediate consumption.