Income Tax Expert Interview Question:

Please explain what is luxury tax?

Submitted by: Muhammad

A tax imposed on goods and services that are non-essential or not included in the necessities. Luxury tax is included in the indirect tax and is incurred by those who purchase or use the product. Ad valorem tax or progressive tax are some luxury tax that is imposed on high priced goods such as cars above a certain value or engine size, villas etc.
Submitted by: Muhammad