Tax rates for buying a new car
- Joined: Aug 20th, 2006
- Posts: 1,267
Does anyone know where to find the tax rates imposed on buying a new car?
I heard that there was a new tax that went into effect on 1 September for all new cars V6 and bigger. A tax hike based on the total value of the vehicle. So someone buying a BMW 750 for example would see a tax bill equal to about 120,000RMB.
Nidaye
Re: Tax rates for buying a new car
The tax is actually based on engine displacement:
http://www.chinacartimes.com/2008/08/13/car-sales-tax-to-increase-dramat...
Engine Size - Current Tax - Tax After Reform
Engines smaller or equal to 1.0l - 3% - 1%
Engines over 1.0l but less than 2.0l - 5% - 5%
Engines over 2.2l but less than 3.0l - 9% - 9%
Engines over 3.0l but less than 4.0l - 15% - 25% (
Engines over 4.0l - 20% - 40%
So as you can see, the increase only applies to cars with 3.0L and larger engines.
Using your example of an 750Li, the tax hit would be much more than 120k RMB.
toby-BJ
Re: Tax rates for buying a new car
Hi, this question may not be too related, but how much is the annual car and boat use tax? Or are foreigners exempted from this?
Nidaye
Re: Tax rates for buying a new car
I don't remember the exact cost, but after discount it is around 450/yr if you pay for it through your insurance company.
Foreigners are not exempt from paying this.