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Circular on Relevant Issues Concerning Imposing Excise Tax on Super Luxurious Cars

Document No.:

Taxes:Consumption Tax,Vehicle and Vessel Tax,Administration of Tax Levy & Collection

Date of Promulgation:2016-12-01

IssueDepartment:Ministry of Finance,State Administration of Taxation

Date of Implementatio:2016-11-30


Finance Departments (Bureaus) and State Taxation Bureaus of all provinces, autonomous regions, municipalities directly under the Central Government and cities specifically designated in the state budgetary plan and Finance Bureau of Xinjiang Production and Construction Corps,

To guide reasonable consumption and promote energy conservation and emission reduction, upon approval by the State Council, consumption tax shall be imposed on super luxurious cars. Relevant issues are hereby notified as follows:

I. The sub-taxable item of “super luxurious cars” shall be added under the taxable item of “cars”. The levy & collection scope covers passenger cars and medium and light commercial passenger cars, whose single retail price reaches 1,300,000 Yuan (exclusive of VAT) or more. Namely, they are super luxurious cars of the sub-taxable items of passenger cars and medium and light commercial passenger cars. In addition to the imposition of excise tax on the super luxurious cars according to the existing tax rate at the production (importation) stage, the super excise tax shall be levied and collected at the retail stage at the tax rate of 10%.

II. Units and individuals, who sell super luxurious cars to consumers, are taxpayers of this super excise tax at the retail stage.

III. The formula of the super excise tax payable on the super luxurious cars at the retail stage is as follows:

Tax payable = sales amount at the retail stage (exclusive of VAT, the same hereinafter) × tax rate at the retail stage

For super luxurious cars directly sold to consumers by domestic automobile manufacturers, the super excise tax rate shall be the sum of the tax rate at the production stage and that at the retail stage. The formula of the consumption tax payable is:

Tax payable = sales amount × (tax rate at the production stage + tax rate at the retail stage)

IV. The aforementioned regulations shall be executed from December 1st, 2016. For super luxurious cars, whose automobile sales contracts have been signed before November 30th(inclusive) but which have not been delivered, taxpayers shall take signed automobile sales contracts with them to their in-charge taxation authorities to go through record procedures within five working days starting from December 1st(inclusive). Taxpayers, who go through record procedures according to regulations, shall be exempted from the excise tax at the retail stage. Those, who fail to go through record procedures or fail to go through record procedures within the prescribed time limit, shall pay the excise tax at the retail stage.

Attachment: The Table for Adjusted Taxable Items and Tax Rates of Cars


The Ministry of Finance and the State Administration of Taxation

November 30th, 2016



The Table for Adjusted Taxable Items and Tax Rates of Cars

  Taxable Item

  Taxable Rate

Production (Importation) Stage

  Retail Stage




  1. Passenger Car



(1)The cylinder capacity (discharge capacity) is lower than 1.0 liter (inclusive of 1.0 liter).



(2) The cylinder capacity is between 1.0 liter and 1.5 liters (inclusive of 1.5 liters).



(3) The cylinder capacity is between 1.5 liters and 2.0 liters (inclusive of 2.0 liters).



(4)The cylinder capacity is between 2.0 liters and 2.5 liters (inclusive of 2.5 liters).



(5) The cylinder capacity is between 2.5 liters and 3.0 liters (inclusive of 3.0 liters).



(6) The cylinder capacity is between 3.0 liters and 4.0 liters (inclusive of 4.0 liters).



(7)The cylinder capacity is above 4.0 liters.



2. Medium and Light Commercial Passenger Car



3. Super Luxurious Car

Levied and collected according to regulations of sub-taxable items 1 and 2




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