Luxury cars priced over 1.3 million will be subject to a 10% consumption tax

Recently, the Ministry of Finance and the State Administration of Taxation issued the "Notice on Matters Concerning the Levy of Consumption Tax on Super Luxury Cars", stating that in order to guide rational consumption and promote energy conservation and emission reduction, with the approval of the State Council, starting from December 1, a consumption tax of 10% will be levied on super luxury cars in the retail sector.

The Notice states that a new sub-tax item "super luxury cars" will be added under the "car" tax item. The scope of tax collection is passenger cars and medium and light commercial buses with a retail price of RMB 1.3 million (excluding VAT) or more per vehicle, i.e. super luxury cars in the sub-tax items of passenger cars and medium and light commercial buses. For super luxury cars, a consumption tax of 10% will be levied at the retail stage on top of the current consumption tax rate at the production (import) stage.

This will undoubtedly increase the pressure on luxury car companies and dealers who are facing a market environment of "double decline in supply and demand".

List of some super luxury models eligible for additional consumption tax

As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity.