Until now, consumption tax on automobiles was paid at the manufacturing and import stages at once, and the manufacturers and importers were the taxpayers—meaning there was no further consumption tax when retailers sold automobiles to consumers. 

To guide reasonable consumption, save energy and reduce emissions, Caishui [2016] No. 129 now imposes an additional 10% consumption tax at the retail stage for “super-luxury cars,” i.e., those with a retail price over RMB 1.3 million (VAT excluded). 

Taxpayers at the retail stage are those that sell super-luxury cars to consumers. For domestic manufacturers selling super-luxury cars directly to consumers, consumption tax rate is the sum of the respective tax rate at the manufacture and retail stages. 

Date of issue: November 30, 2016. Effective date: December 1, 2016