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China: Consumption tax threshold for super luxury cars reduced

Revisions to consumption tax threshold for super luxury cars effective July 20, 2025.

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September 29, 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

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