Ministry of Finance, State Administration of Taxation: Adjusting the policy on luxury car consumption tax.

On July 17, the Ministry of Finance and the State Administration of Taxation issued an announcement adjusting the consumption tax policy for ultra-luxury small cars. The announcement stated that the scope of ultra-luxury small cars subject to tax has been adjusted to include "all types of passenger cars and medium-duty commercial vehicles with a retail price of 900,000 yuan (excluding value-added tax) and above, of various power types (including pure electric, fuel cell, etc.). For ultra-luxury small cars such as pure electric and fuel cell vehicles that do not have cylinder capacity (displacement), consumption tax will only be levied at the retail stage. Taxpayers selling second-hand ultra-luxury small cars will not be subject to consumption tax. The full text is as follows: Announcement on Adjusting the Consumption Tax Policy for Ultra-Luxury Small Cars Ministry of Finance, State Administration of Taxation Announcement No. 3 of 2025 In order to further guide rational consumption, with the approval of the State Council, the relevant matters concerning the consumption tax policy for ultra-luxury small cars are hereby announced: 1. The scope of ultra-luxury small cars subject to tax in Article 1 of the "Notice of the Ministry of Finance and State Administration of Taxation on Levying Consumption Tax on Ultra-Luxury Small Cars" (Cai Shui [2016] No. 129) is adjusted to include "passenger cars and medium-duty commercial vehicles of various power types (including pure electric, fuel cell, etc.) with a retail price of 900,000 yuan (excluding value-added tax) and above." The scope of consumption tax levied on ultra-luxury small cars at the import stage as stipulated in the "Notice of the Ministry of Finance and State Administration of Taxation on Adjusting the Consumption Tax at the Imported Stage for Small Cars" (Cai Guan Shui [2016] No. 63) is correspondingly adjusted. Consumption tax will only be levied at the retail stage for ultra-luxury small cars such as pure electric and fuel cell vehicles that do not have cylinder capacity (displacement). 2. No consumption tax will be levied on taxpayers selling second-hand ultra-luxury small cars. The second-hand cars referred to in this announcement are vehicles that have been traded and transferred ownership from the completion of registration to meeting the national mandatory scrapping standards. 3. In Article 3 of the "Notice of the Ministry of Finance and State Administration of Taxation on Levying Consumption Tax on Ultra-Luxury Small Cars" (Cai Shui [2016] No. 129), the retail sales amount refers to all payments and fees related to the purchase of a car collected by the taxpayer from the buyer, including payments collected in the name of accessories, accessories and services. 4. The provisions of the above Article 1 and Article 2 shall be implemented from July 20, 2025. This announcement is hereby made. Ministry of Finance, State Administration of Taxation July 17, 2025 This article is selected from the "Official Website of the Ministry of Finance"; GMTEight Editor: Huang Xiaodong.