China: Consumption tax threshold for super luxury cars reduced
Revisions to consumption tax threshold for super luxury cars effective July 20, 2025.
The Ministry of Finance and State Taxation Administration announced a revision to the consumption tax threshold for super luxury cars, reducing it from CNY 1.3 million to CNY 900,000, effective July 20, 2025.
This change subjects more luxury cars to a 10% consumption tax, including imported vehicles, while exempting second-hand sales.
Pure electric and fuel cell super luxury cars are taxed only at retail.
For more information, contact a KPMG tax professional in China:
Fiona Yu | fiona.yu@kpmg.com