The main purpose of this study is to examine the influences consumption tax on economic growth rates. The monetary endogenous growth model in which money is introduced into the system via a transactions-cost technology. The finding from this paper,consumption tax and economic growth rates are negatively correlated. The increase in consumption tax,so that the transaction costs increase could cuts damage economic growth. A monetary equilibrium that either satisfies the Friedman rule of the optimum quantity of money or accommodates the zero-inflation-rate policy is dynamically unstable.