Image via Wikipedia Luxury tax is the tax levied on luxury commodities. Such products are not considered as basic necessities. Luxury tax is commonly levied as Value Added Tax (VAT). The other forms of application are charging it as part of sales tax or as a percentage of a products retail price. In the U.S luxury tax is even applied to real estate purchases if they cross a certain limit. Which means the farther a product goes from being a basic necessity for the major part of the population, the more it becomes a luxury. A commodity is classified as a luxury good based on … [Read more...]