Two Authorities Adjust Consumption Tax Policy on Ultra-luxury Cars

Recently, the Ministry of Finance (MOF) and the State Taxation Administration (STA) have jointly issued the Announcement on Adjusting the Consumption Tax Policy on Ultra-luxury Cars (the "Announcement"), with relevant provisions taking effect on July 20, 2025.

According to the Announcement, the scope of ultra-luxury cars subject to consumption tax as stipulated in Article 1 of the Circular of the Ministry of Finance and the State Taxation Administration on Matters Related to the Additional Levy of Consumption Tax on Ultra-luxury Cars is adjusted to include "passenger cars and medium/light commercial passenger vehicles of all power types (including battery electric, fuel cell, etc.) with a retail price of CNY 900,000 or above per vehicle (excluding VAT)." Accordingly, adjustments have also been made to the scope of ultra-luxury cars subject to consumption tax at the importation stage, as stipulated in the Circular of the Ministry of Finance and the State Taxation Administration on Adjusting the Consumption Tax on Cars at the Importation Stage. For ultra-luxury cars powered by battery electric, fuel cell, or other types without engine displacement, consumption tax will only be levied at the retail stage. In addition, no consumption tax will be levied on the sale of second-hand ultra-luxury passenger cars by taxpayers.



(Source: http://szs.mof.gov.cn/zhengcefabu/202507/t20250717_3968027.htm)

Note: The link to the Chinese official website of the document is for your reference.