Announcement on Adjusting the Consumption Tax Policy for Super Luxury Cars
Announcement No. 3 of 2025 of the Ministry of Finance and the State Administration of Taxation
In order to further guide rational consumption, with the approval of the State Council, the following matters regarding the consumption tax policy for super luxury cars are hereby announced:
1. Article 1 of the Notice of the Ministry of Finance and the State Administration of Taxation on Matters Concerning the Additional Levy of Consumption Tax on Super Luxury Cars (Cai Shui [2016] No. 129) adjusts the scope of collection of super luxury cars to “passenger cars and medium and light commercial buses of various power types (including pure electric, fuel cell and other power types) with a retail price of RMB 900,000 (excluding VAT) or more per vehicle”. The scope of collection of consumption tax at the import stage of super luxury cars stipulated in the Notice of the Ministry of Finance and the State Administration of Taxation on Adjusting Consumption Tax at the Import Stage of Cars (Cai Guan Shui [2016] No. 63) is adjusted accordingly.
Consumption tax is only levied at the retail stage on ultra-luxury cars such as pure electric and fuel cell cars that do not have cylinder capacity (displacement).
2. No consumption tax will be levied on taxpayers who sell second-hand luxury cars. Second-hand cars as mentioned in this announcement refer to vehicles that have been traded and whose ownership has been transferred from the time they have completed the registration procedures to the time they reach the national mandatory scrapping standards.
3. The retail sales volume referred to in Article 3 of the Notice of the Ministry of Finance and the State Administration of Taxation on the Additional Levy of Consumption Tax on Super Luxury Cars (Finance and Taxation [2016] No. 129) refers to all prices and additional fees related to the purchase of cars charged by taxpayers to the purchasers, including prices charged in the name of fine products, accessories and services.
4. The above provisions of Articles 1 and 2 shall come into force on July 20, 2025.
This is to announce.
Ministry of Finance, State Administration of Taxation
July 17, 2025