What is luxury car tax?
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Luxury car tax (LCT) is a given form of luxury tax that is levied on vehicles that exceed a particular limit of price, which is usually the premium or high-end category. Some countries like Australia have created luxury car tax on cars whose value is more than a given limit. This tax is aimed at two things; raising revenue and deterring wasteful expenditure on luxury automobiles. The rate and threshold of tax are subject to variation between jurisdictions. This is an extra cost that buyers should consider when buying expensive cars. Luxury car tax has the potential to influence the financial choices made by businesses such as the purchase or leasing of high-end cars.