What is the difference between a capital gains tax and a sales tax?

A capital gains tax is levied on the profit made from the sale of an asset, such as stocks or real estate, when the asset is sold for more than its purchase price. In contrast, a sales tax is a consumption tax imposed on the sale of goods and services, calculated as a percentage of the purchase price at the point of sale. Essentially, capital gains tax applies to investment profits, while sales tax applies to everyday transactions. Both taxes serve different purposes within the tax system.